Mitsubishi Logistics
Integrated Report2021Corporate Philosophy
Engage in sincere and fair businessactivities to secure appropriate profitsand promote steady growth,
appropriately compensating
our stakeholders while contributing
to the realization of an affluent andsustainable society.

■ Editorial Policy
The Mitsubishi Logistics Group (the “Group”) has issued the Environmental
and Social Report each year since fiscal 2007 to fulfill its accountability about
the effects of its business activities on society and the environment. However,
we have now decided to further enhance the information to be published,and have changed the title to “Mitsubishi Logistics Integrated Report.”
In addition to introducing the “Initiatives by the Mitsubishi Logistics
Group for ESG Management and the SDGs” announced in April 2021, thisReport describes precisely and in an easy-to-understand manner thepromotion of CSR as well as each of the seven core subjects based on
the “Guidance on Social Responsibility” (JIS Z 26000, ISO 26000) withregard to the goals, activity details and achievements of the Group’s CSR
management, which are related to these initiatives. This Guidance is a
global standard for CSR established by the Japanese Industrial Standards(JIS) and the International Organization for Standardization (ISO).
Boundary of the Report and Reporting Period

Boundary of
the Report:
Reporting
Period:The Report covers Mitsubishi Logistics Corporation (the“Company”) and Group companies.
This Report covers our business activities for the period from
April 1, 2020 to March 31, 2021. To ensure comprehensive
disclosure, however, certain relevant information regarding events
that occurred prior to and/or after this period has been included.

Contents
Editorial Policy, Tool Map and Contents

1

Corporate History

2

Top Message
At a Glance
Introduction of Businesses

468

Initiatives for ESG Management and the SDGs 12
Value-creation story

14

Six key themes

15

Measures to be taken, performance indicators, and target values 16
MLC2030 Vision/Medium-term Management Plan

18

Organizational GovernanceCorporate governance20

Publication Date

Risk management

23(Previous publication date: February 2021)
December 2021
(Next planned publication date: December 2022)

Promoting the realization of our corporate philosophy and strategies; Review
25of goals, standards, etc.; Entrenchment of the compliance of standards, etc.
Confirmation of the processes of implementation for action plans 26

Reference Guidelines

JIS Z 26000: 2012 (Guidance on Social Responsibility) ISO 26000: 2010
(Guidance on Social Responsibility)■ Ministry of the Environment: Environmental Reporting Guidelines (Fiscal
Year 2018 Version)■ Global Reporting Initiative (GRI): Sustainability Reporting Guidelines (GRI
Standards)■ IIRC (International Integrated Reporting Council)■

Contacts for Inquiries Regarding the Integrated Report

CSR･Compliance Team, General Affairs Division, Mitsubishi Logistics
Corporation
Nihonbashi Dia Building, 19-1, Nihonbashi 1-chome, Chuo-ku, Tokyo
103-8630, Japan
TEL: +81-3-3278-6657 FAX: +81-3-3278-6694
Tool Map

Promotion of CSR for every employee; Emphasis on communication 27
Introduction of officers

28

Respect for Human Rights
Improvement of awareness of human rights; Respecting human30
rights through business activities

Appropriate Working Environment
Respect for labor-management relations; Employment and31
the importance of the employment relationship
Decent working conditions

32

Ensuring the safety of workers

34

Human resources development and training

37

Financial information

Environmental Conservation● Flash report (Japanese)● Flash report (English)

Reduction of CO2 emissions as a measure for reducing climate change● Annual report (Japanese)

Use of renewable resources; Contribution to the recovery of the eco-system 42● Financial statement (English)● Notice of Annual General Meeting of Shareholders(Japanese/English)● Business report/Interim business report (Japanese)● Consolidated results briefings (Japanese/English)● Integrated Report (Japanese/English)● Corporate Governance Report (Japanese)

Non-financial information

You may view some of the relevant data and the reference tablefor Global Reporting Initiative (GRI): Sustainability Reporting
Guidelines (GRI Standards) on Mitsubishi Logistics’ Web site.
“Extended version”
https://www.mitsubishi-logistics.co.jp/english/csr/pdf/extended_version.pdf
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

39

Fulfillment of Sincere and Fair Business Activities
Prohibition of unfair advantage in competition andpromotion of fair and open competition

43

Provision of Safe, High-Quality and Useful Services
Provision of socially and environmentally beneficial high-quality services 44
Promotion of disaster measures to maintain service functions 47

Coordination with Local Communities and International Society
Contribution through local community activities, etc.

49

Statement Supporting the UN Global Compact
Practice of the UN Global Compact’s 10 principles

52

Company Profile and Stock Information

53“GRI Guidelines reference table”
https://www.mitsubishi-logistics.co.jp/english/csr/pdf/griguideline.pdf
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ GRI Guidelines reference table

Mitsubishi Logistics Integrated Report 2021

1

Corporate History

The Mitsubishi Logistics Group, leading the way into
a new era and continuing to grow together with socialand economic changes
The Company was founded in 1887 in Fukagawa, Tokyo, after absorbing the warehousing business from the former
Mitsubishi Company.
For over 130 years, we have been engaged in the logistics business through the organic integration of the overlandtransportation, port and harbor transportation, and international transportation businesses centering on the warehousing
and distribution business. Since the mid-1950s, we have been developing the real estatebusiness, expanding our business domain from leased buildings constructed oncompany-owned property to the sale and leasing of homes and the managementof retail facilities.

1950
1950

1887
1887

1900
1900

January 1931

Fiscal 1930
(non-consolidated)
Operating revenue:¥8,860,000
Operating income:¥870,000

Inaugurated Japan’s first trunk-room
service in Edobashi (present-day Nihonbashi), Tokyo.

1887—

April 1887
Established as Tokyo Warehouse Limited Company,
headquartered in Fukagawa, Tokyo, after absorbing
the warehousing business from Mitsubishi Company(founded in March 1880).
December 1893

Reorganized the company and changed thename to Tokyo Warehouse Co., Ltd.

1900—
December 1902

Established Kobe Branch.

Fiscal 1907
(non-consolidated)
Operating revenue:¥860,000
Operating income:¥320,000

November 1907
Completed an integrated land andsea cargo handling facility forshipping freight at Kobe Port, and established a system
for the port warehousing business with links to railtransport (later the port and harbor transportation business).

1930 Edobashi Warehouse Building

May 1949

Listed on the Tokyo Stock
Exchange.

November 1962
Constructed a multi-purpose rentalbuilding for data centers,
warehousing rooms and residential
units in Fukagawa, Tokyo, and started
the business of leased buildings forcomputer processing centers.

(The Company subsequently made a full-scale
entry into the real estate business, constructing
rental facilities, including buildings for computer
1973 Tokyo Dia Building
processing centers, office buildings andcommercial facilities, and continuing with the sale of condominiums.)

April 1963
January 1970

1907 Wada Terminal, Kobe

2

March 1918

Changed name to Mitsubishi Warehouse Co., Ltd.

September 1923

Suffered damage in the Great Kanto Earthquake.

Mitsubishi Logistics Integrated Report 2021

Fiscal 1962
(non-consolidated)
Operating revenue:¥6,727 million
Operating income:¥628 million

Made a full-scale entry into the trucking business.
Established a warehousing company inCalifornia, U.S.
April 1971
Made a full-scale entry into the air
freight business.
September 1973 Established a rental building forcomputer-processing centers in
Shinkawa, Tokyo (Tokyo Dia Building)April 1984
Established a transportation company in Singapore.
October 1986
Established a company engaged in
information-related business.
April 1987
Celebrated the centennial of
the Company’s foundation.

2020
2020
2000
2000

Built high-performance warehouses
at each branch (approximately 83,000 square meters) anddeclared the first year of our warehouse remodeling.

June 1993
January 1995
February
April 1996
June

Suffered damage in the Great East Japan Earthquake.

October 2012

Completed Ibaraki Distribution Center No. 3 in Osaka.

Fiscal 1992
(non-consolidated)
Operating revenue:¥124.4 billion
Operating income:¥10.7 billion

1992

September 1992

March 2011

Constructed rental facilities, including retailfacilities and office buildings, at Harborland, Kobe.
Established a warehousing company in Indonesia
Suffered damage in the Great Hanshin Earthquake
Established a transportation company in the
Netherlands.
Established a warehousing company in China.
Changed English name to Mitsubishi
Logistics Corporation.

1999
Made a full-scale entry into therefrigerated warehouse business.

Fiscal 1999
(consolidated)
Operating revenue:¥125.8 billion

Disaster-Resistant Facility

September 2014

The first Disaster-Resistant and
Eco-Friendly Warehouse
Disaster-Resistant and EcoFriendly Warehouses have been
constructed in several domestic
areas since the construction of thefirst warehouse.

Completed Nihonbashi Dia Building.
Rebuilt the warehouse building (headoffice, trunk room) owned in Edobashi,Tokyo, and constructed a DisasterResistant and Eco-Friendly Office
Building.

Disaster-Resistant Facility

September 2015
Completed expansion of the Tobishima
Distribution Center, Nagoya.

June 2017
October(Constructed
Operating income:
refrigerated
billion¥warehouses in
Ohi, Tokyo in June 1999 and in Rokko,
Kobe in December 2002.)

11.1

Disaster-Resistant Facility

Certified as an Authorized Customs Broker(AEO customs)
Completed the MM2100 Distribution
Center in Indonesia.
Opened the first overseas Disaster-Resistantand Eco-Friendly Warehouse.

1999 Automated warehouse(Ohi Refrigerated Warehouse)

Disaster-Resistant Facility

2000—

2005
Built North Building, Sakurajima
Distribution Center No. 2 (Comprehensive
Efficiency Plan No. 1 under the Logistics
Efficiency Improvement Act).

August 2006
January 2007
April 2008
October
September 20102006
Yokohama Bay Quarter

Constructed a retail facility at Yokohama
Portside.
Formulated our Environmental Policy.
Certified as an Authorized Warehouse
Operator (AEO warehouse)
Enacted our Quality Declaration.
Conducted a tender offer for the shares of Fuji
Logistics Co., Ltd., turning the company and its
10 subsidiaries into our consolidated subsidiaries.

Disaster-Resistant Facility

Disaster-Resistant Facility

July 2018
Completed Ibaraki Distribution Center
No. 4 in Osaka.

November 2019
Completed Seishin Distribution Center
Phase 2 Building in Kobe.

2020

Disaster-Resistant Facility

February 2020
Completed Minamihonmoku
Distribution Center in Yokohama.
October 2020
Completed Misato Distribution
Center No. 2 Phase 2 buildingin Saitama Prefecture

Fiscal 2020
(consolidated)
Operating revenue:¥213.7 billion
Operating income:¥11.7 billion

Disaster-Resistant Facility

Mitsubishi Logistics Integrated Report 2021

3

Top Message

Mitsubishi Logistics Group focuses on global
environment-friendly activities and engages in sincere
and fair business activities, contributing to the realizationof an affluent and sustainable society.

Masao
Fujikura
President

The MLC2030 Vision
Contributing to the improvement of customer’s value,
we offer comprehensive logistics solutions to the management of customer’s supply chains,from procurement to distribution/sales, as their partner.
4

Mitsubishi Logistics Integrated Report 2021

Introduction
Mitsubishi Logistics continues to uphold its corporate
philosophy, which states, “Engage in sincere and fairbusiness activities to secure appropriate profits andpromote steady growth, appropriately compensating our
stakeholders while contributing to the realization of anaffluent and sustainable society.” To realize this corporate
philosophy, the Group has stipulated the Code of Conduct.
Our Group companies work in cooperation to carry out
our logistics business both in Japan and around theworld, organically and comprehensively managing eachbusiness area through our information network, startingwith our core warehousing business, and including
overland transportation, port and harbor operations, andinternational transportation. Our real estate businessfocuses on leased buildings constructed on companyowned property. Of especial note, the involvement of ourlogistics operations in every industry countrywide provides
a key function in the economic foundation as a highly
public social infrastructure not only under normal
circumstances, but also in case of natural disasters orother emergencies. We continue to make the utmost
effort to support the daily lives of people everywhere andthe business activities of our customers at every level ofproduct procurement, production and sales.

Final Year of the Management Plan (2019–2021)
The current fiscal year is the final year of the Management
Plan (2019-2021), which started in April 2019. Despite signsof active freight movement in some areas, including
e-commerce markets, the economy took a sharp downturn,both in Japan and overseas, due to the global COVID-19
pandemic, and the situation became extremely difficult.
In these circumstances, this plan is designed to move
forward with measures already under way, withoutchanging the fundamental concept of pursuing the
growth potential in overseas businesses while ensuring
profitability in the domestic businesses.
With the establishment of the new management plan,
we have defined the ideal image of the Mitsubishi
see page 18)
Logistics Group, the “MLC2030 Vision” (that we ought to pursue towards the year 2030.
The Group positions the new medium-term
management plan as the first stage to make a leap
toward the achievement of the MLC2030 Vision, and haschosen “Mitsubishi Logistics Group’s growth strategy to
be achieved through Innovation” as the subtitle for theplan. We are moving forward with initiatives directed
towards 2030.

Corporate Social Responsibility
With the establishment of our Code of Conduct in 1997,
we have clearly demonstrated our stance and approach
toward further enhancing our level of adherence torelevant laws and regulations, disclosing appropriate
corporate information, addressing and resolving global
environmental issues, and providing safe, high-quality andsocially useful services. In addition, the Company
approved and declared in May 2014 its support for the
UN Global Compact, which is a set of universally
accepted CSR-related principles. The Company believes

that complying with internationally accepted norms in theareas of human rights, labor, the environment and anticorruption in its business activities and fulfilling its social
responsibility will lead to an affluent and sustainable
society. To firmly instill this stance throughout the entire
Group, we have clarified that we promote CSR activities
as a specific strategy in the management plan, and haveincorporated such initiatives in specific measures.
Our logistics and real estate business activities are
deeply connected to society. To earn recognition for thevalue of our existence as a member of society andcontinue to grow in the future, the Group needs to steadily
implement the goals set forth in the plan. In particular,
taking into account the increased demand for reducing
natural disaster risk stemming from the global increase
and intensification of natural disasters that are believed tobe caused by climate change, we are promoting theconstruction of Disaster-Resistant and Eco-Friendly
Warehouses equipped with reinforced disaster-preventionfunctions and enhanced global environmental measures,
as well as Disaster-Resistant and Eco-Friendly Office
Buildings that have similar functions.
Following on from the previous fiscal year, we worked
on business continuity while implementing measures toprevent COVID-19. As a logistics company, I believe that
we were able to respond to the ongoing risks and fulfill
our corporate social responsibility.

Initiatives for ESG Management and the SDGs
Under these circumstances, we decided to organize andwork on initiatives for ESG management and the SDGs in
response to calls from stakeholders. Details will be
see page 12), but we establishedprovided further on (six key themes and aim to achieve them in fiscal 2030,
together with the MLC2030 Vision.
While overlapping with the key themes, these initiatives
will serve to create and provide new value and realize
diversity in our workstyles by promoting innovation andbuilding partnerships based on the two principles ofvaluing safety and security and taking care of theenvironment.
This effort is linked to the spirit of the Three Principles
seeof Mitsubishi’s Business Management Philosophy (page 13), which has been passed down throughout thehistory of the Mitsubishi Group.
We aim to create value and achieve growth byreinforcing the Group’s commitment to “contributing to
the realization of an affluent and sustainable society
through our corporate activities,” and working together
with our customers, partners, and other parties to create
a new society.
Going forward, we will reflect the initiatives for ESG
management and the SDGs in the next management
plan, and to ensure that we achieve the targets that havebeen set, we will establish a Sustainability Committee andpromote quality initiatives through progress management,
periodic inspection and replacement of relevant measures
and KPIs, and expanding communication with internaland external parties through resources such as theIntegrated Report and the Group’s official website.
We ask for your continued understanding and support.

Mitsubishi Logistics Integrated Report 2021

5

At a Glance
Financial Items
Fiscal 2011

Fiscal 2012

(year ended
March 31, 2012)(actual results)

Fiscal 2013

(year ended
March 31, 2013)(actual results)(year ended
March 31, 2014)(actual results)

Fiscal 2014

(year ended
March 31, 2015)(actual results)

Fiscal 2015

(year ended
March 31, 2016)(actual results)

Operating revenue

(million yen)

203,697

192,260

198,161

204,362

206,831

Operating income(million yen)

12,533

12,305

12,148

11,44911,309Non-operating income (loss)

(million yen)

1,975

2,221

1,965

3,007

2,716

Ordinary income(million yen)

14,508

14,526

14,113

14,456

14,025Extraordinary income (loss)

(million yen)

(742)

(804)

288

395

645

Profit before income taxes

(million yen)

13,766

13,721

14,402

14,851

14,670

Profit attributable to owners of parent (million yen)

7,564

8,591

8,520

9,133

9,350

EBITDA (Operating Income + Depreciation) (million yen)

26,101

24,402

24,66524,83825,139Amounts per share of profit attributable toowners of parent/Earnings per share (yen)

43.16

49.02

48.62

52.12

53.37

Amounts per share of cash dividends applicable(yen)to the year/Annual dividend per shareInterim 6
Term-end 6

Interim 6
Term-end 6

Interim 6
Term-end 6

Interim 6
Term-end 6

Interim 6
Term-end 6

(%)

27.8

24.5

24.7

23.0

22.5

Total assets

(million yen)353,269

375,180

396,238

433,041

413,264

Total liabilities

(million yen)

141,733

147,352

159,596

169,952

155,740

Total net assets

(million yen)

211,536

227,827

236,641

263,089

257,524

Net assets per share(yen)

1,195.82

1,288.42

1,337.56

1,486.99

1,455.06

Equity ratio

(%)

59.3

60.2

59.2

60.2

61.7

Return on investment (ROE)

(%)

3.7

3.9

3.7

3.7

3.6

Return on assets (ROA)

(%)

2.1

2.4

2.2

2.2

2.2

Depreciation

(million yen)

13,567

12,097

12,517

13,38913,830

Increase in non-current assets(capital investment amount)

(million yen)

10,94917,723

23,674

24,462

8,841

Cash flows from operating activities (million yen)

14,63019,552

19,701

20,691

17,246

Cash flows from investing activities (million yen)

(12,478)(16,513)(23,144)(20,562)(7,032)

Cash flows from financing activities (million yen)

(6)

1,760

11,634

1,638(7,927)

Cash and cash equivalents at the end of the year (million yen)

27,41632,461

41,23643,27645,658Dividend payout ratioNon-financial Items
CO2 emissions(Unit: thousand t-CO2)

CO2 emissions per revenue(Unit: t-CO2/100 million yen)

Cumulative number of Disaster-Resistant
Eco-Friendly Warehouses and Disaster-Resistant(Unit: buildings)
Eco-Friendly Office Buildings
■Warehouse ■Building

100

75

40
79.2

75.9

73.2

30
65.5

38.0

15
35.2
32.2

12
28.6

27.5

10

58.7

50

8

20

4

9
5

10

8

13
9

6

5
25

10
4

0

0
2016 2017 2018 2019 2020

6

(FY)

Mitsubishi Logistics Integrated Report 2021

4

4

4

4

0
2016 2017 2018 2019 2020

(FY)

2016 2017 2018 2019 2020

(FY)

Fiscal 2016

(year ended
March 31, 2017)(actual results)

Fiscal 2017

(year ended
March 31, 2018)(actual results)

Fiscal 2018

(year ended
March 31, 2019)(actual results)

Fiscal 2019

(year ended
March 31, 2020)(actual results)

Fiscal 2020(year ended
March 31, 2021)(actual results)

Fiscal 2021

Fiscal 2021

(year ending
March 31, 2022)(management
plan targets)(year ending
March 31, 2022)(forecast)

208,718

215,407

227,185

229,057

213,729

227,000

240,000

12,74812,421

12,66012,195

11,735

12,60014,500

3,308

3,739

4,673

4,626

4,278

ー

ー

16,056

16,16017,333

16,822

16,013

16,20017,100

(260)

(790)

(541)

(84)

40,097ーー

15,796

15,37016,792

16,737

56,111ーー

10,665

10,517

11,564

11,851

39,16013,300ー

25,67325,16825,65626,447

26,595ー

30,10060.88

120.07 *1

132.03137.31462.28159.20ーInterim 6
Term-end 8

Interim 7
Term-end 14 *1

Interim 15
Term-end 30

Interim 30
Term-end 30

Interim 30
Term-end 30

Interim 39
Term-end 39

ー

23.0

23.3

34.1

43.7

13.0

49.0

ー

435,354462,031*2

482,575

468,243535,761ーー

158,484

167,480 *2

183,470

181,886

208,932ーー

276,870

294,550

299,104

286,356

326,829ーー

1,565.27

3,330.71*1

3,381.20

3,298.18

3,914.63

ー

ー

63.0

63.1

*2

61.4

60.5

60.4

ー

ー

4.0

3.7

3.9

4.1

12.9

ー

ー

2.5

2.3

2.4

2.5

7.8

ー

ー

12,925

12,747

12,995

14,252

14,860ーー

27,336

21,582

18,036

26,38738,817ーー

21,46621,481

23,352

17,62440,176ーー(22,270)(22,219)(31,786)(18,022)(14,002)ーー(7,819)3,419

12,066(2,359)(5,270)ーー

36,921

39,58042,97240,541

61,367ーー*1 A reverse stock split was conducted on October 1, 2017 at a ratio of one share for every two shares of common stock.
*2 The Company has applied “Partial Amendments to ‘Accounting Standard for Tax Effect Accounting’” (AccountingStandards Board of Japan Statement No. 28, February 16, 2018) beginning from fiscal 2018. The consolidated financial
position for fiscal 2017 has been retrospectively adjusted to reflect the application of the Standard, etc.

Total number of people who received(Unit: persons)compliance education*3

Ratio of new employees retained after three years(Unit: %)

10,000

100

Men

7,500

7,956

8,386

8,709 8,742

9,187

75

5,000

100.0
90.9

93.8
91.7

100.0
90.9

95.6

96.6

94.7

94.4

20

15

5

0
2016 2017 2018 2019 2020

(FY)

13
13

10

25

0

■Men ■Women

Women

50

2,500

Number of employees taking child-care leave(Unit: persons)02016 2017 2018 2019 2020

(FY)

8
7

7
5

10

10

9

9

2
1
1
1
2016 2017 2018 2019 2020

(FY)

*3 Total number of participants (cumulative number ofparticipants during each fiscal year) for all Group companies

Mitsubishi Logistics Integrated Report 2021

7

Introduction of Businesses

We support people’s affluent lives and corporate activities
through the logistics business and the real estate business.
The Mitsubishi Logistics Group provides high-quality services to support people’s affluent lives andcorporate activities through the Logistics segment businesses centering on the warehousing anddistribution business and the Real Estate segment businesses centering on the leasing of buildings.
Warehousing and Distribution Business

Overland Transportation BusinessWe are able to meet a broad range ofcustomized logistics needs through the full
integration of warehouses and distribution
centers, which are located at major ports
and key inland transportation areas
nationwide; our transportation and delivery
networks; and the logistics information
systems that organically link them. In this business, fixed temperaturestorage and refrigerated warehouses for pharmaceuticals and fresh andprocessed foods are sufficiently offered in addition to ordinary
warehouses for room temperature storage to ensure the provision of safeand efficient storage/distribution processing/delivery services using ouroriginal information technology and the latest facilities. Meanwhile, we
strive to reduce the environmental impact by promoting green
management. Furthermore, we are active in the construction of advanced
facilities that aim to coordinate with local communities under the conceptof Disaster-Resistant and Eco-Friendly Warehouse equipped with a solar
power generation system and emergency power generators.

In Japan, we extend and reinforce the optimal
distribution system for each customer througha tactical combination of our national, trunkline transit network, which is supported by
Ryoso Transportation Co., Ltd. within the Groupand excellent local counterparts, andindependent collection and delivery services
linking local areas. We have expanded our transportation service for smallquantity, joint delivery needs especially for foods and pharmaceuticals. In addition,
we offer cargo feature-specific, diversified transportation/delivery services
including ocean freight container transportation for import and export cargo andthe transportation of heavy goods such as plant facilities. Moreover, we endeavor
to realize eco-friendly, safe and secure transportation services by drawing on our
information technology and promoting green management. Furthermore, with thestart of the “DP-Cool,” a high-quality pharmaceuticals delivery service withtemperature control provided by Dia Pharmaceutical Network Co., Ltd., oursubsidiary that specializes in the delivery of pharmaceuticals, we strive to realize
the further sophistication of transportation quality.

Port and Harbor Operation Business

International Transportation BusinessWe provide secure high-quality logistics
services including container terminal
operations for integrated port and harbor
operations at all major Japanese ports,
namely Tokyo, Yokohama, Nagoya, Osaka,
Kobe and Hakata, to meet every kind ofcustomer need. We also offer a wide rangeof other marine shipping related services such as importing/exporting ofvessels, ship registration, and agency operations for special ships suchas oil-drilling rigs.

In response to increasingly diversifying
customers’ logistics needs, we propose
optimum transportation routes door-todoor worldwide tailored to every
customer’s request by taking advantage ofour global network and a variety oftransportation means such as vessels,
aircraft, railways and trucks. Meanwhile, the Group’s overseas operatingbases provide comprehensive logistics services such as cargotransportation, customs clearance and storage of goods, as well as
logistics related support services such as consulting on legal systems,
procedures and tariff costs utilizing economic partnership agreements in
the respective areas for customers who plan to launch into foreign
markets. We will not limit ourselves only to transport operations, and willfurther promote worldwide our logistics know-how, which the Company
has accumulated over its history of more than 130 years.

Logistics Business
Real Estate Business

83.2%
Operatingrevenuecompared withfiscal 2020

16.8%

Operating revenue ¥179,255 million

Operating revenue¥We are involved in the real estate business in all six major cities of Japan—Tokyo, Yokohama,
Nagoya, Osaka, Kobe and Fukuoka. In addition to activities such as the redevelopment ofproperties based on the optimum application of each property’s features and the leasing ofapproximately 50 real estate facilities (offices, retail facilities and residences), totaling almost
1 million m2 of total floor space, we are involved in the sales of condominiums. We are also
active in developing Disaster-Resistant and Eco-Friendly Office Buildings, which will help ourcustomers enhance their business continuity and reduce their environmental burden.

8

Mitsubishi Logistics Integrated Report 2021

36,153 million

Logistics Business,

Warehousing and Distribution Business, Overland Transportation Business
The Mitsubishi Logistics Group’s Warehousing and Distribution Business and Overland
Transportation Business are responsible for the supply chain for a wide range ofindustries, from daily necessities such as food and pharmaceuticals to cutting-edge
industry-related materials, and have grown by contributing to socio-economic
development. Going forward, we will continue to endeavor to provide better services toeveryone by proactively working on the introduction of new technologies and othermeasures with the aim of realizing both a sustainable society and business growth.
■ Segment overview
Operating revenue (Unit: ¥billion)

Warehousing and Distribution Business

Eiichi Kato
General Manager,
Warehousing and Distribution
Business Division

Although transactions for pharmaceuticals and household
goods, etc. increased, transactions for automotive
components and beverages, etc. decreased.

549.03 565.07 559.54

Fiscal 2020 operating revenue¥

55,954 million (down 1.0% year on year)
2018

2019

2020

(FY)

Operating revenue (Unit: ¥billion)

Overland Transportation BusinessAlthough transactions for pharmaceuticals and household
goods, etc. increased, transactions for automotive
components and beverages, etc. decreased.

518.50 521.32 482.14

Fiscal 2020 operating revenue

48,214 million (down 7.5% year on year)

¥

2018

2019

2020

(FY)

■ Business strategy
Warehousing and Distribution Business● Make full-scale entry into e-commerce

Enhance services for
new logistics markets
Improve theprofitability andproductivity of
distribution center
operations
Distribution center
management that
contributes to society
and the environment

logistics and expand business● Expand Warehousing and Distribution
Business targeting domestic logistics in
China and ASEAN, etc.
● Unprecedented investment decisions tomaximize profits● Improve productivity of clerical andwarehouse operations by utilizing newtechnologies, etc.
● Provide high-quality logistics services

that protect the value of products● Roll out Disaster-Resistant and EcoFriendly Warehouses in Japan andoverseas

Overland Transportation BusinessRoll outtransportation/delivery
services in responseto changes in thebusiness environment● Further enhance nationwide “DP-Cool”

Establish newtransportation/delivery operations
utilizing information
systems● Optimize delivery routes and reduce

Reduce CO2 emitted
from the overlandtransportation
business

services● Promote initiatives to contribute to thesound development of the transportationindustry
costs through AI● Improve the quality of operations byvisualizing transportation/delivery
operations● Implement a modal shift, including tocoastal vessels with a low environmental
burden● Reduce transport and delivery vehicles
by improving vehicle allocation efficiency

Opened “SharE Center misato” in Misato City, Saitama Prefecture“SharE Center misato,” the next-generation e-commerce platform operated by
the Mitsubishi Logistics Group, started operation in July 2021.
The center has introduced “EVE,” an automated conveyance robot, and“Logizard ZERO,” an inventory control system specific to logistics, and provides
optimal logistics services for e-commerce.
The center is located near Misato Junction, and provides delivery services thatenable the smooth and reliable delivery of customers’ products to purchasers.

Mitsubishi Logistics Integrated Report 2021

9

Introduction of Businesses

Logistics Business,

Port and Harbor Transportation Business
The Mitsubishi Logistics Group’s Port and Harbor Transportation Business has continued
to grow along with economic development, with our top priority being contributions tosocio-economic development through the harbor transportation business at major
Japanese ports. Going forward, we will focus on the smartification and digitalization ofports and harbors utilizing information technologies, aimed at highly functional and highly
efficient container terminal operations. At the same time, we will work to realize asustainable and affluent society and further improve services.
■ Segment overview

Seiji Ueda
General Manager,
Port and Harbor Transportation
Business Division

The volume of freight handled has decreased due to theglobal COVID-19 pandemic.

Operating revenue (Unit: ¥billion)
238.90 232.95

213.32

Fiscal 2020 operating revenue

21,332 million* (down 9.2% year on year)¥* Does not include revenue from shipping related services such as ship
registration and agency operations.

2018

2019

2020

(FY)

■ Business strategy
Prompt and flexible response tointernational container ship strategic
port policy
Expand business and enhancecompetitiveness of the Harbor
Transportation Business Division
Further utilization of new technologies
for ESG management and the SDGs● Further enhance services at Minamihonmoku Container Terminal, which has achieved integrated

operations of four berths● Improve productivity of port logistics by participating in verification tests, including Cyber Port and CONPAS●E
 xpand the conventional shipping freight business and the car carrier business● Strategic operation of independently operated container terminals (Osaka: Nanko C-9, Kobe: Rokko C-4)● Reduce the environmental burden by sharing information through logistics platforms● Expand undersea geotechnical survey ship agency operations for offshore wind power generationand ship registration business in accordance with international treaties on environmental regulations

Started full-fledged operations of CONPAS at Minamihonmoku Container Terminal
In March 2021, we started full-fledged operations of “CONPAS,” a new port
information system that we have been working on in collaboration with the Ministry ofLand, Infrastructure, Transport and Tourism’s Kanto Regional Development Bureau
since fiscal 2017, at the Minamihonmoku Container Terminal. CONPAS is a systemthat utilizes information technologies to eliminate congestion in front of container
terminal gates and reduce time spent in the container trailer terminal. Going forward,
it is expected to further improve the efficiency and productivity of container logistics.

Real Estate Business
The Mitsubishi Logistics Group’s real estate business began with the concept of effectively
utilizing logistics sites for the creation of better communities, and has made a contribution
to society through wide-ranging real estate development, including office buildings
applying our expertise in disaster countermeasures, commercial facilities, and housing.
Going forward, in addition to redeveloping existing facilities, we will participate in new
development led by other companies, and will acquire development and management
expertise with the aim of being a business operator that can demonstrate highmanagement capabilities by creating multipurpose communities.
■ Segment overview

Takashi Mukai
General Manager,
Real Estate Business Division

Commercial facilities were closed and condominium sales
decreased due to COVID-19.

Operating revenue (Unit: ¥billion)
386.79361.53Fiscal 2020 operating revenue

36,153 million (down 12.2% year on year)

¥

2018

10

411.99Mitsubishi Logistics Integrated Report 2021

2019

2020

(FY)

Logistics Business,

International Transportation BusinessWe develop logistics services that contribute to customers’ global supply chains,
centered on international integrated transport operations, such as ocean and air
forwarding, and overseas logistics operations. In the midst of major changes in social andindustrial structures, including the carbon neutrality that is covered in the initiatives for
ESG management and the SDGs and rapid digitalization, we aim to create value for ourcustomers by providing future-oriented proposals and services.
■ Segment overview

Operating revenue (Unit: ¥billion)

Although the volume of freight handled decreased due to
COVID-19, it began to recover from the second half.

Hidechika Saito

530.15 501.38

465.14

Fiscal 2020 operating revenue

General Manager,
International Transportation
Business Division

46,514 million (down 7.2% year on year)

¥

2018

2019

2020

(FY)

■ Business strategy
Utilization and application of digitaltechnology and new services, andinitiatives for ESG management andthe SDGs
Global Grid Strategy(Point→Line→Surface)
Global Performance Improvement (GPI)● Provide new services, including FTA/EPA consulting services and real-time tracing● Develop materials and services that give consideration to the global environment, and visualize theenvironmental burden (CO2 emissions) in international transportation● From ASEAN to Europe and the U.S./Expand ocean and air transportation within the ASEAN region● Expand the logistics business in 4 regions (North America, Europe, China, and Asia)● Improve business competitiveness by integrating or collaborating with the system infrastructure globally● Improve business quality by reviewing business processes and sharing best practices at each base

Provide support to increase the resilience of customers’ global supply chains
The spread of COVID-19 has exposed the risk of disruptions to the global supply chain.
The Mitsubishi Logistics Group is supporting the increased resilience of customers’ global
supply chains during and after the COVID-19 pandemic by implementing flexible switches
between ocean transportation and air transportation, utilizing railway transportation suchas the Siberian Land Bridge, and proposing and implementing stock operations in Japanand overseas (inventory retention that leads to overall optimization).

■ Business strategy● Completed Meieki Dia Meitetsu Building in 2020 (Acquire expertise in the development andoperation of commercial complexes

see Topics)● Acquired joint equity in GRAND FRONT OSAKA, an office and commercial facility complex● Selected as the preferred bidder for the “Kumoi 5-chome District Redevelopment Project”

in Sannomiya, Kobe City
Implement measures to strengthen the businessfoundation and improve management efficiency● Merger of the Company’s subsidiaries, Dia Buil-Tech Co., Ltd. and Nagoya Dia Buil-Tech

Co., Ltd.

* Management company for the Company’s leased buildings

Completed Meieki Dia Meitetsu Building in Nishi-ku, Nagoya
Meieki Dia Meitetsu Building is an office building developed jointly with Nagoya Railroad Co., Ltd. It is
located within a 4-minute walk from Nagoya Station, which is expected to become even more convenient
due to the opening of the Linear Chuo Shinkansen. In addition to providing high-quality office space withexcellent safety performance and environmental friendliness, the 1st and 2nd floors have been developed
as pedestrian walkways that can be used by local residents. We will operate the building so that it
becomes a workplace that is enjoyed by local residents and supported by many business people.
Mitsubishi Logistics Integrated Report 2021

11

Initiatives for ESG Management and the SDGs
On April 30, 2021, the Group announced its Initiatives for ESG (Environment, Social, Governance)
Management and the SDGs (Sustainable Development Goals) proposed by the United Nations.
In order to disseminate these initiatives, we have established six key themes and compiled a list ofmeasures, performance indicators and target values for each theme based on our corporate
philosophy, the MLC2030 Vision, the basic policies of the Management Plan (2019-2021), and our
CSR activities to date.
The Group’s logistics and real estate business activities support the bedrock of society, and represent
exactly the kind of activities that contribute to the creation of a sustainable society, which represents
the spirit of the SDGs.
The Group will aim to achieve sustainable growth by identifying opportunities for business growth
while we endeavor to resolve social issues through initiatives such as environmental measures, etc.
Going forward, the Group will reflect initiatives developed based on the six key themes in the nextmanagement plan, and to ensure that we achieve the targets that have been set, we will establish a
Sustainability Committee and promote quality initiatives through (1) progress management,(2) periodic inspection and replacement of relevant measures and KPIs, and (3) expanding
communication with internal and external parties through resources such as the Integrated Report
and the Group’s official website.

12

Through responses to various emergencies

Resolving environmental issues withpartnerships

As COVID-19 continues to spread, the Group is
continuing to provide services such as safe and securelogistics and real estate services, which form part of oursocial infrastructure, while implementing various
measures.
The logistics business and the real estate business are
not usually at the front of people’s minds. However, in theevent of an emergency, we are reminded that they
constitute essential work and are services that are
indispensable to society.
The Great Hanshin Earthquake that occurred on
January 17, 1995, and the Great East Japan Earthquakethat occurred on March 11, 2011 were the largest
emergencies to occur in recent years, and several of theGroup’s facilities were severely damaged.
The Group has worked collaboratively to overcome
these emergencies by working on recovery measures andresponding to customer requests.
Our response to these kinds of disasters has led to ourfacility concepts of “Disaster-Resistant and Eco-Friendly
Warehouses” and “Disaster-Resistant and Eco-Friendly
Office Buildings,” which lay the foundation for ourbusinesses.

The Group has been promoting the installation of solar
power equipment and LED lighting under the concepts of“Disaster-Resistant and Eco-Friendly Warehouses” and“Disaster-Resistant and Eco-Friendly Office Buildings,”
but there are still many pressing issues left to achieve
CO2 reduction and carbon neutrality.
While the Group can accommodate environmental
initiatives for hardware in logistics and real estate facilities
on its own, partnerships with customers, industry peers,partners, and other parties are important for addressing
comprehensive supply chain issues.
We believe that we can further improve and optimize
our logistics operations by, for example, (1) working withour customers to predict demand and supply, andestablish optimum production and logistics systems, (2)working with industry peers and partners to utilize AI for
efficient car allocation, improve loading efficiency andpromote Container Round Use, and (3) working on
systemization that will enable us to accomplish these
initiatives.
We will not only optimize logistics, but also contributeto resolving environmental issues by sharing more indepth information with all related parties, including ourcustomers, and creating services that are valuable toboth customers and Mitsubishi Logistics Corporation.

Mitsubishi Logistics Integrated Report 2021

The Three Principles of Mitsubishi’s Business Management Philosophy (“Sankoryo”) and ESG
We believe that the three principles of the Mitsubishi
Sankoryo of “Shoki Hoko” (fulfilling responsibility tosociety), “Shoji Komei” (devotion to fairness), and“Ritsugyo Boeki” (maintaining a global perspective)
connect directly to the modern concept of ESG. The spiritof these three principles, passed down throughout thehistory of the Mitsubishi Group, will continue to be sharedby the executives and employees of the Mitsubishi Group
as we move forward into a new future.

The Three Principles of Mitsubishi’s Business Management Philosophy
The Mitsubishi Sankoryo is a managerial creed articulated by the fourth president of the Mitsubishi organization,
Koyata Iwasaki. The Sankoryo serves as a basic philosophy of an internally and externally open group being sharedby the constituent Mitsubishi Group companies that are independent from each other.

“Shoki Hoko”“Shoji Komei”“Ritsugyo Boeki”

Corporate Responsibility to Society

Integrity and Fairness

Global Understanding through Business

Strive to enrich society, both materiallyand spiritually, while contributing toward
the preservation of the global environment.

Maintain principles of transparency
and openness, conducting businesswith integrity and fairness.

Expand business, based on an
all-encompassing global perspective.

Code of Conduct
We have established the following Code of Conduct to realize our corporate philosophy (see back cover) basedon the spirit of the Three Principles of Mitsubishi’s Business Management Philosophy.

We engage in business activities to secure appropriate profits and promote steady growth, appropriately compensating our
employees and stockholders while contributing to the realization of an affluent and sustainable society.
1.	We shall comply with laws, ordinances and rules that enable us to honestly and fairly carry out business activities without deviating fromsocial norms.
2.	We shall appropriately disclose corporate information in a timely manner to enhance broad communications with society.
3. We shall continue to have no contact or relations with any antisocial forces that might pose a threat to the public order and safety of civil society.
4.	We recognize the importance of environmental issues and shall actively cooperate with diverse activities for environmental preservation.
5.	We shall provide people with safe, high-quality and socially valuable services, and endeavor to conduct social contribution projects as a“good corporate citizen” while taking into account coordination with local communities and international society.
(Established on December 16, 1997, and revised on August 29, 2005) Each subsidiary shall establish its own Code of Conduct in compliance with this Code of Conduct.

The MLC2030 Vision and the Management Plan (2019-2021)
In March 2019, the Group formulated and announced the
MLC2030 Vision and the Management Plan (2019-2021)
as growth plans through progressive and bold innovation
see page 18).
(
Currently, we are focusing on three priority categories(medical/health care, food/beverage, and machine/
electrical machine industries) for the realization of the
MLC2030 Vision.
In each category, we are focusing on initiatives that
include (1) expanding services both in Japan andoverseas, such as high-quality cold chains in Southeast
Asia (ASEAN), (2) optimizing comprehensive supply
chains by establishing logistics platforms in cooperation

with our customers and partners, and (3) receiving orders
related to operations incidental to logistics, such as
operations for ordering/order receiving centers.
We will continue to develop these three categories andcultivate growth areas. In addition to the need for further
initiatives in labor-saving and automation for distribution
centers, as stable labor forces become more difficult tosecure, sophistication of the quality of logistics operations
and DX (Digital Transformation) has also become
necessary as the business environment continues tochange drastically.
We will accelerate our innovation to address theseissues.

Mitsubishi Logistics Integrated Report 2021

13

Initiatives for ESG Management and the SDGs

Value-creation Story
External environment
Reduce energy costs

Prevent global warming (reduce CO2, carbon neutrality)

Improve operational efficiency and promote DX through AI

Infrastructure damage due to natural disasters

Onset of an aging society

Corrections to long working hours

Increase in cyber crimes and accidents

Key issues
Provide disaster-resistant, safe andsecure infrastructure in Japan andabroadEnsure thorough compliance together withpartners, and establish a diverse organization

Establish environments and systems thatallow employees and their families to leadhealthy, fulfilling lives

Work with customers andpartners to reduce
environmental impact andprevent global warming

Promote DX (Digital Transformation) and resolve
social issues

Create new businesses by proactively collaboratingwith partners in Japan and overseas

Management resources
Financial capital
Total assets

Free cash flow*

535.8 billion ¥26.2 billion¥

Human capitalIntellectual capital

Number of
employees

Logistics Real estate CVC fund management
DX, IT-related
investment¥
billion ¥billion¥billion(2021-2030 cumulative total)

4,598

Capital investment

50.0

¥

50.0

Other investment

5.0

50.0 billion* Operating CF-Investment CF

Business domains

Customers

Logistics
Business
Safety, security,
disaster
response
Compliance,
human rights,
genderReal EstateBusiness

Environmental
initiatives

The MLC2030 Vision

Basic managerial creed

Executives/ Cutting-edge
employees of technology,
innovation
the Group

Medium-termManagement Plan
(2019-2021)

The Three Principles of Mitsubishi’s
Business Management Philosophy(“Sankoryo”)

Human resource
development,
employeesatisfaction(

see page 18)(

Partnerships

Corporate philosophy
Partners

Shareholders/
Investors

see page 13)(including
subcontractors)(

see back cover)We aim to create corporate value and achieve growth by contributing to
the realization of an affluent and sustainable society by enhancing customer
value, reducing environmental impact, and preventing global warming.
14

Mitsubishi Logistics Integrated Report 2021

Six Key Themes
In order to make progress toward realizing ESG Management and the SDGs, we established a project
team in September 2020, conducted questionnaires for each executive and employee (including
those of Group companies), and examined key themes with outside experts. We have established six
key themes and compiled a list of measures, performance indicators, and target values for each.

Six key themes to be tackled by the Group
Safety, security,
disaster
response

Environmental
initiatives

Cutting-edge
technology,
innovation

Partnerships

Human resource
development,
employee satisfaction

Compliance,
human rights,
genderDetails of the six key themes to be tackled by the Group are as follows.

1. Safety, security, disaster response

4. Partnerships

Our vision for the Group starts with “safety and security.”
We will remain prepared from both the perspectives of
hardware in logistics facilities, etc., and software in
information systems, etc. to protect the safety ofimportant cargos entrusted to us by our customers andprovide a reliable sense of security.
From the viewpoint of our customers, one could say that
our facilities can be used to help prepare for emergencies(disasters, etc.), which we recognize is certainly one of ourcustomers’ crisis management measures.
The Group will always strive to meet the expectations ofthese customers.

We believe that co-creation with customers and partners
is key to promoting DX (Digital Transformation).
While collaborating with startups on initiatives such as
using AI to optimize warehouse operations, we will also
continue to collaborate with our customers throughprojects such as working with customers to predict
demand and supply, establishing optimum production
and logistics systems, and promoting optimization forboth sides.
In addition, we will work together with the financial
industry to consider services that are valuable tocustomers, such as a service that can hedge the risk offluctuations in ocean freight rates or hybrid products thatcombine insurance and logistics.

2. Environmental initiatives
In order to address comprehensive supply chain issues,
we will cooperate with our customers, industry peers, andpartners to reduce the number of transportation vehicles
and promote modal shifts through initiatives such asContainer Round Use, improving truck loading efficiency,
and reviewing delivery conditions. In terms of information
systems, we will fully address environmental issues suchas the reduction of CO2 emissions by focusing on theutilization of vehicle and cargo request systems and berthreservation systems.

5. Human resource development, improving
employee satisfaction
In April 2021, we introduced a regional system for generalemployees that will enable a variety of workstyles
according to our employees’ lifestyles.
In addition to clarifying and managing the duties ofeach position, we will also work on creating environmentsthat support work-life balance for employees.
At the same time, we will expand our training system
toward developing global human resources.

3. Cutting-edge technology, innovation
Promoting sophistication, automation, and labor-saving in
our logistics and real estate services and working withcustomers, partners, and other parties to standardize
services and create platforms are extremely important
themes for realizing a sustainable society. These initiatives
are also aligned with the Group’s MLC2030 Vision.
One example of our initiatives in this respect is the
opening of a distribution center for e-commerce in Misato
City, Saitama Prefecture, in July 2021, which utilizes thelatest automated conveyance robots, etc. We will proactively
develop these kinds of projects in Japan and overseas.

6. Compliance, human rights, gender
We recognize that compliance, human rights, and gender
are fundamental to our business activities, and will strive
for constant verification and improvement of our current
efforts.
In addition, we will assume a primary role in ensuring
thorough compliance throughout the comprehensive
supply chain, including Group companies and partners.

Mitsubishi Logistics Integrated Report 2021

15

Initiatives for ESG Management and the SDGs

Measures to be Taken, Performance Indicators, and Target Values
Measures to be taken through business activities, performance indicators for each measure, andtarget values are as follows.
Going forward, the Group will reflect initiatives developed based on the six key themes that have beenannounced in the next management plan, and to ensure that we achieve the targets that have been set
Six key themes

Priority measures and measures through business activities

Provide infrastructure services that are sustainable even during
disasters

Performance indicators❶ Earthquake resistance standards
for facilities*● Develop facilities with strong earthquake and wind pressure resistance that

surpasses the requirements of various laws and regulations

Safety, security,
disaster response● Secure fuel for business continuity at distribution centers and in transportation

operations during large-scale disasters

Develop high-quality logistics services that utilize temperature controls
and security capabilities in Japan and overseas● Further utilize DP-Cool vehicles for temperature-controlled transportation ofpharmaceuticals

Further develop disaster-resistant eco-friendly warehouses andeco-friendly office buildings that serve to reduce GHG/CO2 emissions❷ Percentage of required fuelsecured*1 in target regions*2❸ Utilization rate of DP-Cool vehicles*
for temperature-controlled
transportation of pharmaceuticals❶ CO2 emissions reduction rate forfacilities*● Consider the environment through electricity supply by solar power generation,

Environmental
initiatives

reduce power consumption through LED lighting in warehouses

Reduce GHG/CO2 emissions by enforcing efficient transportation
methods, etc.
● Realize efficient delivery by improving loading rates, etc., shorten waiting time

❷ CO2 emissions reduction rate fortransportation*using a truck reservation system, mount cargo handling equipment with fuel cells
towards a CNP*

Enhance and automate logistics/real estate services and save labor
Cutting-edge
technology, innovation● Logistics: Optimize warehouse operations and car allocation planning using AI, etc.,

respond to EC logistics, etc., automate equipment in warehouse facilities and makeit labor-saving● Real estate: Enhance and sabe labor of facility management operations using IT

DX, IT-related* investment

Collaborate with startups and companies in other industries
Partnerships● Optimize development and create new businesses through open innovation with

CVC* fund management

CVC, etc.

Develop personnel and welfare programs that value each individual
employee● Establish a personnel system that accommodates a variety of workstyles
Human resource● Create an environment that helps balance work and life
development,
employee satisfaction Develop human resources with global perspectives● Develop human resources with global perspectives through expansion of training

programs, etc.

❶ Ratio of regional generalemployees*❷ Ratio of employees taking childcare leave*❸ Ratio of employees with experiencein overseas assignments*

Promote sincere and fair business activities
Compliance,
human rights, gender

Ensure thorough compliance, with awareness of comprehensive supply
chains● Implement initiatives for adherence to relevant laws and regulations and respect

Response rate for Code of Conduct
questionnaire and CSR questionnaire*for human rights together with subcontractors* CNP: An abbreviation for “Carbon Neutral Port”
Refers to contributions to realize carbon neutrality at ports and harbors which serve as focal location/industrial bases for international logistics through the sophistication of
port and harbor functions with considerations for decarbonization

16

Mitsubishi Logistics Integrated Report 2021

to be achieved by fiscal 2030, we will establish a Sustainability Committee and promote initiatives
through progress management, periodic inspection and replacement of relevant measures and KPIs,
and expanding communication with internal and external parties through resources such as theIntegrated Report and the Group’s official website.
Description of performance indicators* Targeting logistics and real estate facilities owned by the Company that will be completed and begin
operation from April 1, 2021 onward

Target values for FY2030❶ Maintain 110% of earthquake
resistance standards*1: Targeting Nankai Trough Earthquake Disaster Countermeasure Promotion Area as designated by the
Cabinet Office*2: P ercentage of required fuel secured for use during large-scale emergencies for logistics facilities owned
and operated by the Company with an area of approximately 16,550 square meters or more throughmaintaining reserve kerosene stored in-tank, contracts with oil distribution companies for priority fuelsupply during disasters, etc.

❷ 100% of requirement secured* V ehicles compatible with the “DP-Cool” temperature-controlled pharmaceuticals delivery service provided
by the Group company Dia Pharmaceutical Network Co., Ltd.

❸ 100% temperature-controlled
transportation with DP-Cool vehicles* Targeting logistics and real estate facilities owned by the Company and its Group company, Fuji Logistics
Co., Ltd.

❶ Scope 1+2 CO2 emissions: down
30% (versus FY2013)* T argeting transportation with the “DP-Cool” temperature-controlled pharmaceuticals delivery service
provided by the Group company Dia Pharmaceutical Network Co., Ltd.

❷ CO2 emissions: down 20%(versus FY2018)* Investment in reformation of services and business models based on the needs of customers and society
using data and digital technology, and reformation of operations, organizations, processes, and corporate
culture/climate

Cumulative investment of 50.0 billion yen
for FY2021-FY2030* An abbreviation for “Corporate Venture Capital,” a business practice in which companies form funds with
their own corporate capital to invest in and support unlisted startups that may be related to theirbusiness or be advantageous for their core business in the future

Establish a CVC of 5.0 billion yen* General employment for limited workplace regions introduced in April 2021 for realizing diverse andflexible workstyles❶ 30%* S ystem that allows male and female workers who are raising a child under the age of 2 to apply to takeleave for child-care until the child reaches the age of 2

❷ 60%

* General employees with experience in overseas assignments (including training programs)❸ 25%* Questionnaire on CSR targeting subcontractors, etc., with close business relationships

Over 90% every year

Mitsubishi Logistics Integrated Report 2021

17

Initiatives for ESG Management and the SDGs

The MLC2030 Vision and the Medium-termManagement Plan
The MLC2030 Vision

Contributing to the improvement of customer’s value,
we offer comprehensive logistics solutions to the management of customer’s supply chains,from procurement to distribution/sales, as their partner.
We have established the MLC2030 Vision as the ideal image of the Mitsubishi Logistics Group in 2030 (Top Message). Our growth strategies aimed at achieving this vision are as follows.
1. Establish a customer-oriented support system
The Group will establish a customer-oriented support systemwith a focus on the medical/health care, food/beverage, andmachinery/electrical machine industries as priority areas, andwill take on comprehensive supply chain challenges as thecustomer’s partner. Through these efforts, the Group will seek
to expand its business domain and boost its market share.

2. Expand overseas business
The Group will move forward with system enhancements to
support customer supply chains in the medical/health careand food/beverage industries and strengthen its forwarding
business with demand for high-quality cold chains* expected
to grow in a number of regions such as Southeast Asia
(ASEAN).
* Services providing uninterrupted temperature-controlled transport anddistribution for refrigerated goods.

see page 4:

3.	Secure stable profits in the port and harbortransportation and the real estate businesses
The Group will further enhance the competitiveness of theport and harbor transportation business by leveraging its
cargo handling services, which ranks the highest globally for
efficiency, while at the same time developing commercial
complexes and facilities and boosting its operational capability
in the real estate business. By doing so, the Group will seek
to secure stable profits.

4.	Improve operational processes and further
utilization of new technologies
The Group will review the operational processes of all businesses
and facilitate efficient operations by utilizing new technologies
such as IoT, AI and robotics. Through these efforts, it aims to
improve service quality and production efficiency.

5. Strengthen the Group management base
The Group aims for growth by strengthening costcompetitiveness through organizational management acrossthe Company and its Group companies and securing anddeveloping human resources, particularly in the priority areas.

Management Plan (2019-2021)
The following is an outline of the plan.
1.	Positioning of the New Medium-term Management
Plan (2019-2021)
The Group has established the New Medium-term Management
Plan (2019-2021) as its first step in achieving the MLC2030
Vision. We are implementing the following measures during thethree fiscal years from FY2019 to FY2021.

Figures of consolidated business results (Unit: ¥billion)

Operating revenue Operating income Ordinary income
Actual results for FY2020

213.7

11.7

16.0

Targets for FY2021

240.0

14.5

17.1

Consolidated operating revenue

Consolidated operating income❶ Strengthening the business foundations of the priority●
areas(Unit: ¥billion)
300(Unit: ¥billion)
20.0❷ Establishing a system that leverages new technologies●

200● Maintaining competitiveness in the port and harbor❸transportation business100● Developing commercial complexes and other facilities for❹the real estate business and improving the organizational
structure thereof to strengthen operational capabilities❺ Bolstering production efficiency through more efficient●
operational processes and other means❻ Improving operational conditions to reform workstyles and●create innovation❼ Increasing shareholder returns●❽ Promoting CSR-oriented management●18

2. Financial targets

Mitsubishi Logistics Integrated Report 2021

240.0

213.7

15.0

11.7

14.5

10.0

0

5.0

FY2020(results)

FY2021(targets)

0

FY2020(results)

FY2021(targets)

3. Financial strategy
With respect to the raising of funds for new investments, theGroup seeks to boost its financial leverage through a range ofmeasures such as borrowings and the issuance of corporate
bonds, while following the principle of maintaining financial
soundness.

4. Investment plan
During the plan period, the Group plans to make investments
totaling ¥100.0 billion (¥50.0 billion in logistics and ¥50.0 billion
in real estate).

We are promoting various initiatives with the aim of realizing the MLC2030 Vision,and hereby introduce two of them.
Opened a distribution center for
e-commerce
In July 2021, we opened and started operations at “SharE
Center misato,” a distribution center for e-commerce, in
Misato City, Saitama Prefecture. Developed in responseto the growing demand for logistics due to the recent
expansion of the e-commerce market, it is a sharing
platform center for e-commerce business operators.
A major feature of the center is its efficient operations
utilizing automated conveyance robots. The robots
automatically convey the racks in the warehouse to a
position directly in front of the worker, thereby simplifying
the flowline for workers, realizing a safe and comfortableworkplace, and reducing walking distances. This enables
improved efficiency and saves labor. Furthermore, since
the areas where the robots operate do not require
lighting, power consumption can be reduced, and the
reduction in CO2 emissions also contributes to a lower
environmental impact.
In the area of systems, we have introduced an inventory
control system specific to e-commerce logistics, which
not only enables data to be linked to the robots but also
the provision of a seamless service that connects orderdata from the e-commerce sites to delivery request data
sent to shipping companies.
In an era of coexistence with COVID-19 during and after
the pandemic, it is expected that demand in the
e-commerce market will continue to grow even further. We
will therefore utilize the logistics knowhow we have gained
thus far to support the growth of the e-commerce market.
We will extensively convey the value we provide to ourcustomers, and promote the creation of opportunities forbusiness negotiations.

We established a marketing team to support
sales activities that will lead to increased
customer value
Since the spread of COVID-19, non-face-to-face contact
with customers has rapidly increased, even in the BtoB
business. However, final business acquisition andexpansion is still largely the result of marketing activities
conducted by people.
Under these circumstances, in April 2021, weestablished a marketing team in the Corporate Planning
Division in order to collaborate with business divisions
over measures to integrate non-face-to-face information
gathering on potential customers as well as functions tocultivate demand, utilizing digital marketing technology.
By informing companies about our business content
and initiatives to improve quality, we are working with theaims of reminding companies that we are a “partner inenhancing corporate value,” ensuring labor savings in
information gathering on potential customers, andcreating an environment where we can focus more thanever on activities aimed at enhancing customer value,
which only human beings can do.
We will start by integrating and organizing internal
information on customers and establishing online
communication with them. Going forward, however, we
will focus on measures to acquire new customers andexpand our transactions with existing customers.

VOICE
Initiatives for integrated
marketing

VOICE
Launch of SharE Center misato
Naotake Matsumoto
Misato Distribution Center B, Misato No. 1 Office, Tokyo Branch
As a member of the project team, I was consistently involved in
all aspects from planning the e-commerce center (SharE Center
misato) to formulating a business plan and setting up the center.
Currently, I am working at the center every day to realize stable
operations and productivity improvements for new customers.
Demand for e-commerce centers is growing along with therecent expansion of the e-commerce market, but in order toovercome the intense competition with other companies in theindustry, we must appeal to customers by promoting theadvantages that we have over other companies. I would like torealize competitive operations at the center by leveraging our
high-quality and efficient operations utilizing “EVE,” an automatedconveyance robot, and the inventory control system specific to
e-commerce logistics.

Tomoyasu HoshinoMarketing Team, Corporate Planning Div.
In daily life, I feel that most people decide whether to purchase a
product by searching for it online. Even when it comes tobusiness-to-business transactions, it appears that people
communicate with a company directly only after researchingthem online. The progress of digital technology has made it
extremely easy for us to send and receive information
simultaneously with multiple companies.
The newly established Marketing Team will utilize theknowledge and resources accumulated over many years inorder to help resolve issues with customers’ supply chains. We
will work on measures to ensure that the value provided by theGroup is recognized by more and more companies.
Going forward, I would like to work collaboratively within the
Company, within the Group, and with other partners to consider
matters such as what kind of customers we can help, and whatmeans will be effective in order for us to deepen our relationshipwith those customers over the long term. We will make use ofthat information to develop our measures.

Mitsubishi Logistics Integrated Report 2021

19

Initiatives for ESG Management and the SDGs

Organizational
GovernanceMay 2018: Group Management Meeting

To ensure positive decision making in order to realize the sustainable improvement of corporate value, it is necessary toestablish organizational processes to optimally utilize the Group’s philosophy, strategies and standards, etc. As fororganizational governance, the Group recognizes and strengthens such issues as “Promoting the realization of ourcorporate philosophy and strategies,” “Entrenchment of the compliance of standards, etc.,” “Confirmation of the processesof implementation for action plans” and “Review of goals and standards, etc.”

Corporate GovernanceEvaluation of the effectiveness of the Boardof Directors

Basic stance

From 2021, in order to further improve the effectiveness of
the Board of Directors, the Company started conducting
self-assessment questionnaires consisting of questions
and free comment sections for all directors and corporate
auditors regarding the size and composition of the Boardof Directors, the operation of the Board of Directors, therole and functions of the Board of Directors, collaboration
between supervisory functions and auditing organizations,etc. and relationships with shareholders and investors.
The Board of Directors held deliberations based on the
results of the questionnaires, and determined that theeffectiveness of the Board of Directors in 2021 was largely
ensured.
In addition, as future efforts, we will work to further
improve the effectiveness of the Board of Directors byproviding outside directors and outside corporate auditorswith opportunities to explain the Group’s business andissues, and to deepen discussions for improving
corporate value, as well as enhance the opportunity foroutside directors and auditing bodies, including corporate
auditors, to exchange opinions and share information.

The Company recognizes the enhancement of corporate
governance as a significant business issue that will enable us
to carry out our social mission and responsibilities as apublicly listed company and to aim for sustainable growth anddevelopment. Accordingly, we are working to enhance thefunctions of the board of directors and board of corporate
auditors by appointing outside directors and outside corporate
auditors. We established a Nomination and Compensation
Committee as an advisory body to the Board of Directors tofurther enhance the objectivity and transparency of theprocedures for determining the nomination and compensationof directors. In addition, we have introduced an executive
officer system for the purpose of further strengthening
corporate governance by strengthening management andsupervisory functions, and by improving management
efficiency and accelerating decision making.
Furthermore, we are endeavoring to boost corporate
governance through multiple initiatives, such as: establishingan internal control system through drafting the rules of conduct
for our executives and employees, setting up the Internal
Control and Compliance Committee, and enhancing aninternal audit system; instituting a risk management system via
the Risk Management Committee; and, finally, by reinforcing
disclosure through the early publication of financial statements.
See the chart of corporate governance system below）  (■ Chart of corporate governance system

General Shareholders Meeting
Board of Directors
Nomination andCompensation Committee

Executive Committee

Corporate Auditors

President
Managing Executive Officers

20Internal Control andCompliance Committee

Respective Divisions, andChambers of the Head Office
6 branches

Group Management Meeting

Independent Auditor

Corporate Auditors’ Chamber

Executive Officers

General Managers’ Meeting

Board ofCorporate Auditors

53 subsidiaries(including 20 overseas subsidiaries)
15 affiliates

Mitsubishi Logistics Integrated Report 2021

Internal Audit Department

Sustainability Committee
Risk Management Committee

■ Status of concurrent positions and reasons for appointment of outside directors and outside corporate auditors

Position and nameOutside Director

Tatsuo Wakabayashi

Outside Director

Toshifumi Kitazawa

Outside Director

Tadaaki Naito

Outside Director

Tetsuya Shoji

Outside Director

Kazuko Kimura

Reasons for appointment

Significant concurrent positions

Mr. Tatsuo Wakabayashi has long been engaged in the corporate managementof Mitsubishi UFJ Trust and Banking Corporation and holds abundant knowledge
and experience relating to banking and finance, etc. The Company nominatedhim in the belief that reflecting his broad insight and invaluable advice in the
Company’s management is beneficial to the Company’s growth andenhancement of corporate value and he is capable of supervising the Company’s
management and Directors effectively.

Senior Advisor of Mitsubishi UFJ Trustand Banking Corporation
Outside Director of Mitsubishi
Materials Corporation

Mr. Toshifumi Kitazawa has long been engaged in the corporate management of
Tokio Marine & Nichido Fire Insurance Co., Ltd. and holds abundant knowledge
and experience relating to risk management and finance, etc. The Company
nominated him in the belief that reflecting his broad insight and invaluableadvice in the Company’s management is beneficial to the Company’s growthand enhancement of corporate value and he is capable of supervising theCompany’s management and Directors effectively.

Vice Chairman of the Board of Tokio
Marine & Nichido Fire Insurance Co.,
Ltd.
Member of the Board of Directors(Outside Director) and Member of the
Audit & Supervisory Committee of
MUFG Bank, Ltd.
Outside Director of Sekisui House, Ltd.

Mr. Tadaaki Naito has long been engaged in the corporate management of
Nippon Yusen Kabushiki Kaisha and holds abundant knowledge and experience
relating to logistics operations, etc., which is the Company’s mainstay business.
The Company nominated him in the belief that reflecting his broad insight andinvaluable advice in the Company’s management is beneficial to the Company’s
growth and enhancement of corporate value and he is capable of supervising
the Company’s management and Directors effectively.

Chairman, Director,
Chairman and Executive Officer of
Nippon Yusen Kabushiki Kaisha

Mr. Tetsuya Shoji has long been engaged in the corporate management of NTT
Communications Corporation and holds abundant knowledge and experience
relating to business operation innovation, etc. utilizing new digital technologies
which the Company has been promoting. The Company nominated him in the
belief that reflecting his broad insight and invaluable advice in the Company’s
management is beneficial to the Company’s growth and enhancement ofcorporate value and he is capable of supervising the Company’s management
and Directors effectively.

Corporate Advisor of NTT
Communications Corporation
Outside Director of Sapporo Holdings
LimitedOutside Director of Hitachi Zosen
Corporation

Ms. Kazuko Kimura, as someone who holds a Ph.D. holder in pharmaceuticalsciences, has served in prominent posts at external organizations such as theWorld Health Organization after working for the Ministry of Health and Welfare
and as professor at National University Corporation Kanazawa University. In
addition, she holds abundant knowledge and experience in the field of medical
and health care, etc., which are the Company’s core and focus areas. The
Company nominated her in the belief that reflecting her broad insight andinvaluable advice from the viewpoint of diversity in the Company’s management
is beneficial to the Company’s growth and enhancement of corporate value andshe is capable of supervising the Company’s management and Directors
effectively.

Specially Appointed Professor of
Graduate School of Medical Sciencesof National University Corporation
Kanazawa University
External Director of Takara Bio Inc.
Representative Director of Medicines
Security Workshop

Outside Corporate
Auditor

The Company nominated him in order that he may utilize his abundant
knowledge and broad insight based on many years of experience at trading
companies, etc. for the Company’s audits.

Outside Corporate
Auditor

The Company nominated him in order that he may utilize his experience as alawyer for the Company’s audits by providing appropriate opinions regarding theexecution of duties by directors from an objective standpoint.

Outside Director of SANYO TRADING
CO., LTD.

Outside Corporate
Auditor

The Company nominated him in order that he may utilize his experience as acertified public accountant for the Company’s audits by providing appropriate
opinions regarding the execution of duties by directors from an objective
standpoint.

Outside Director of IX Knowledge Inc.

Mikine Hasegawa

Yohnosuke Yamada

Takao Satoー

Mitsubishi Logistics Integrated Report 2021

21

Initiatives for ESG Management and the SDGs—Organizational Governance
Officer election process
1. Management Executives and Directors
The Company has a total of not more than 18 directors incharge of business execution and independent outside
directors (14 at present) who comprise the Board of
Directors to enable the Board of Directors to engage insufficient deliberations based on diverse opinions and to
make swift and rational decisions.
Directors are required to be persons of outstanding
character and broad insight who can be expected tocontribute to the establishment and execution ofmanagement strategy based on the businessenvironment and management issues. Candidates for
management executives and other directors in charge ofbusiness execution possess a wealth of professional
knowledge and experience in business operations, andcandidates for outside directors possess a wealth ofexperience and knowledge in their professional fields andhave the qualities to effectively provide advice andsupervision from an independent and objective
standpoint.
In determining the reappointment or new appointmentof management executives and directors, the Nomination
and Compensation Committee objectively verifies whether
management executives and executive directors havebeen appropriately considered in light of the above
selection criteria, and report their opinions to the Board of
Directors. For candidates for outside directors, theNomination and Compensation Committee evaluates theeffectiveness of each candidate for reappointment or new
appointment based on the above selection criteria, andreports their opinions to the Board of Directors.
In particular, with regard to the new appointment ofoutside directors, the Company considers the necessary
qualities, etc. at the time of each appointment, compiles
a list of candidates, and updates this list each year fromthe perspective of ensuring the appropriate compositionof the Board of Directors required for the sustainablegrowth of the Company. When it becomes necessary to
appoint a new outside director, the Nomination andCompensation Committee interviews candidates selectedfrom a list of candidates based on the above policy, thecomposition of the Board of Directors, and the suitabilityof persons as outside directors, after which it selects
candidates and makes a report to the Board of Directors.
The Board of Directors deliberates these reports atmeetings of the Board of Directors attended also byoutside directors and outside corporate auditors,
appoints management executives by resolution of theBoard of Directors, and determines candidates for
directors.
In the event that a management executive commits an
act in violation of public order or morals, faces difficulties
in continuing to execute his or her duties for healthreasons, or significantly harms corporate value due to theneglect of his or her duties, the Board of Directors shallconsider submitting a proposal regarding the dismissal of
said management executive to a meeting of the Board of
Directors held with the attendance of outside directors
and outside corporate auditors as necessary, and shall,

22

Mitsubishi Logistics Integrated Report 2021

prior to submitting the proposal, consult with theNomination and Compensation Committee and explain
the reasons for the dismissal to outside directors andoutside corporate auditors other than members of theCommittee.
2. Corporate Auditors
The Company’s Board of Corporate Auditors consist of a
total of five corporate auditors, consisting of two internal
corporate auditors and three independent outside
corporate auditors, in order to enhance audits andincrease the independence of the corporate auditor
system from management.
Corporate auditors are required to be persons ofoutstanding character and broad insight. Candidates forinternal corporate auditors are familiar with the actual
management of the Company, and candidates for outside
corporate auditors have a wealth of professional
knowledge and experience in their professional fields,
including their industry, legal affairs, and accounting.
Based on this policy, Representative Directors preparea draft list of candidates for corporate auditors andproposes it to the Board of Directors with the consent of
the Board of Corporate Auditors. This is deliberated on bya meeting of the Board of Directors held with theattendance of outside directors and outside corporate
auditors, and the candidates for corporate auditors are
determined by resolution of the Board of Directors.

Policy for determining the amount andcalculation method of remuneration
The Company resolved the policy at the meeting of theBoard of Directors based on suggestions from theNomination and Compensation Committee upon
consulting with the Committee.
1. Policy for determining the amount of basic
compensation for each director, details of
performance-based compensation andnonmonetary compensation and calculation
method of their amount or figures (including policy
for determining timing and conditions of providing
compensation)
Compensation for directors shall consist of basic
compensation, performance-based compensation, andstock compensation at amounts based on their duties
and the compensation level of society in general.
Basic compensation shall be paid according to theposition of each director as monthly fixed compensation
within the limit of compensation determined at a general
meeting of shareholders.
Performance-based compensation shall be bonuses for
directors excluding outside directors. A general meeting ofshareholders shall resolve the total amount determinedaccording to the performance indicator of the previous
fiscal year and payment is to be made at a specific timing
every year. Ordinary income shall be adopted as theperformance indicator as it reflects profits from ordinary
business activities in general and is deemed appropriate

as a quantitative indicator. A proposal of the total amountof bonuses shall be determined based on a calculationtable providing the amounts according to the level ofordinary income for the previous fiscal year.
Stock compensation is intended to incentivize
recipients to sustainably increase the Company’s
corporate value and promote the further sharing of value
with shareholders. Payment is to be made at a specifictiming every year at an amount deemed reasonable inlight of the purpose within the compensation limit
determined at a general meeting of shareholders to
directors, excluding outside directors, as compensation
for granting restricted stock. The stock cannot be
disposed of until the recipient retires or resigns from theposition of the Company’s director or other positions
decided by the Company’s Board of Directors.
 olicy for determining the ratio of monetary
2. P
compensation, performance-based compensation,and nonmonetary compensation for each director
The payment amount per type of compensation for eachdirector shall be determined so that the ratio per type ofcompensation for each director will function as an
appropriate incentive commensurate with the duties
expected for each position.
To link compensation with medium- to long-termbusiness performance, the Company’s shares shall beacquired through the officer stock ownership plan using
contributions from monthly compensation and bonuses
at amounts not less than those set for each position. All
the shares purchased shall be held throughout the service
period and until one year after retirement.
3. Determination of details of compensation foreach director
Based on the above policy, matters such as thecompensation limit to be submitted to the general
meeting of shareholders, drafts of proposals regarding
payment of bonuses and stock compensation, andallotment of each type of compensation for eachindividual shall be discussed by the Nomination andCompensation Committee. The Committee wasestablished as an advisory body to the Board of Directors
mainly comprising independent outside directors tofurther enhance the objectivity and transparency of theprocedures for determining the nomination andcompensation of directors. Based on the suggestions of
the Committee, the Board of Directors shall discuss andresolve the matter at its meetings attended by outside
directors and outside corporate auditors.

Risk Management
Main risks and countermeasures
1. Changes in the business environment
The Group’s primary businesses are the Logistics
Business with Warehousing & Distribution Business as its
core, and the Real Estate Business, which focuses on theleasing of buildings, and the Group strives for stable
growth through planned capital investment and theprovision of sophisticated services. However, thesebusinesses are affected by changes in the businessenvironment, with the Logistics Business affected by both
economic fluctuations in Japan and overseas, andlogistics rationalization and business restructuring bycorporate clients, while the Real Estate Business isaffected by the supply and demand balance and market
trends in the rental office market.
2. D amage to business assets (warehouses, rentalbuildings, etc.) caused by natural disasters
With regard to business assets such as warehouses andrental buildings, in addition to earthquake resistance andseismic isolation measures for buildings, external
insurance coverage, and provision of reserve for private
insurance, we take necessary measures including daily
inspections and maintenance, the compilation andupdating of manuals in the event of a crisis such as anatural disaster, and the holding of regular training.
However, in the event of a large-scale natural disaster,such as an earthquake, typhoon, heavy rainfall, flood,tsunami, or volcanic eruption, there is a risk of serious
damage that cannot be covered by insurance, which
could affect the financial position and operating results of
the Group.
3. Reduction in market value and profitability ofbusiness assets (land, buildings, etc.)
In the event that the amount of investment cannot be
expected to be recovered due to a decline in the fair valueof land or buildings, etc., or a decline in profitability as aresult of the application of the Accounting Standard for
Impairment of Fixed Assets, the Group may recognize an
impairment loss to reflect the possibility of recovery so as
not to carry losses forward in the future.
In the fiscal year ended March 31, 2021, we recorded
an impairment loss (¥81 million) as an extraordinary loss
on the Group’s real estate rental facilities (buildings) which
had declined in profitability.
4. Fair value fluctuations of investment securities
The Group’s investment securities as of the end of the
fiscal year under review stood at ¥132,203 million,
consisting mainly of shares in its business partners,
primarily for the purpose of maintaining and strengthening
business relationships. However, the application of the
Accounting Standard for Financial Instruments means weare affected by fluctuations in market prices, such as
share prices. The Company will recognize an impairment
loss on available-for-sale securities with market value if
their fair value falls by 30% or more compared with theacquisition price, taking into consideration the possibilityof recovery. To provide for losses resulting from a decline
in the substantial price of stock and investments withoutmarket value, allowance is recorded as allowance forinvestment loss taking into account the possibility ofrecovery if total net assets of the issuing company fall
below the book value.

Mitsubishi Logistics Integrated Report 2021

23

Initiatives for ESG Management and the SDGs—Organizational Governance5. Compliance risk
The Group has formulated the Code of Conduct that
stipulates compliance with laws and regulations and theexclusion of antisocial forces as the social norms for
employees in executing their duties. The Group is working
to instill awareness of compliance based on corporate
ethics in every employee and ensure thorough compliancewith laws and regulations and various rules through theemployee’s self-check on the status of compliance with
the Code of Conduct, as well as by thoroughly promoting
training on compliance. Furthermore, through theestablishment of the Internal Control Committee and the
CSR and Compliance Committee, the implementation
status of internal control functions and the complianceconditions shall be evaluated in an aim to enhance theinternal controls and compliance.
In addition, we have established an Internal Reporting
Hotline (a helpline) that clearly stipulates the prohibition ofunfavorable treatment of reporting persons, and aremaking efforts to prevent or promptly discover andcorrect actions that may infringe upon laws andregulations.
However, even if such measures are taken, compliancerisks cannot be completely eliminated, and in the event ofa situation that violates laws and regulations, the resultant
administrative sanctions such as surcharges, criminal
sanctions, requests from business partners, etc. forcompensation for damages, and loss of credibility could
affect the financial position and operating results of theGroup.
6. Country risk in overseas business development
Overseas, the Company has a total of 21 subsidiaries inNorth America, China and Asia, and Europe (2 in North
America, 17 in China and Asia, and 2 in Europe), which
are engaged in the logistics business, including
warehousing and international transportation. In overseas
business development, we endeavor to practicemanagement activities in accordance with local laws andregulations and business customs, etc., and in the eventthat the investee acquires non-current assets such as
warehouse facilities, we will consider the degree ofcountry risk and take out overseas investment insurance.
7. Exchange rate fluctuations
In preparing the Group’s consolidated financial
statements, the financial statements of overseas
consolidated subsidiaries are converted into yen.
Fluctuations in the exchange rate due to the Company
and some consolidated subsidiaries having foreign
currency-denominated receivables and payables could
affect the financial position and operating results of theGroup.
8. Tightening of regulations on environmental
conservation, etc.
Recognizing the importance of environmental issues, theGroup has established the Environmental Policy and theEnvironmental Voluntary Plan, and is promoting business

24

Mitsubishi Logistics Integrated Report 2021

activities that take the global environment into
consideration. Specifically, in addition to working onenergy-saving measures for warehouses and real estate
rental facilities, we are endeavoring to introduce cargohandling equipment with a low environmental impact anddevelop services that reduce the environmental impact incollaboration with customers and subcontractors.
However, going forward, in the event that the tighteningof related laws and regulations and other regulations
necessitates new capital investment, the increase in funds
and cost burden could affect the financial position andoperating results of the Group.
9. Information security risk
The Group utilizes various information technologies topromote business and improve business efficiency, andhandles business partners’ confidential information andcustomers’ personal information in its business activities.
In the management of information systems andinformation networks, we focus on stable operations andsecurity measures, take necessary steps such as
appropriate server management and information
backups, and work to reduce security risks throughinformation security education such as training fortargeted attacks.
However, if business activities are suspended orinformation is leaked due to a computer virus,
unauthorized access from an external source including
cyber attacks, disaster, or inappropriate information
management, the resultant claims for compensation fordamages by business partners and the loss of credibility
could affect the financial position and operating results of
the Group.
10. Risk from COVID-19
In the fiscal year ended March 31, 2021, the global
spread of COVID-19 had a major impact on the domestic
and overseas economies. If containment of COVID-19
extends beyond April 2021, the Logistics Business will
experience sluggish cargo movements and the Real
Estate Business will face an increased vacancy rate due
to tenants moving out, which could significantly affect thebusiness activities and business results of the Group.
While the Group will endeavor to minimize the effect,
the impact from the spread of COVID-19 is highly
uncertain and the future course of the pandemic could
affect the financial position and operating results of theGroup.
As a countermeasure against COVID-19, the Grouphas established the COVID-19 Response Headquarters
headed by the President, giving the highest priority to thehealth and safety of executives and employees. In order
to continue business, the headquarters is taking sufficientmeasures to prevent the spread of infections, including
promoting telecommuting and staggered work, restricting
business trips, prohibiting meetings in principle, andconducting health checks.

Promoting the realization of ourcorporate philosophy and strategies
Disseminating the corporate philosophy andthe management plan (Basic Strategy)
The Group has expressed the goal of “contributing to therealization of an affluent and sustainable society” in its
see back cover) to make its intent
corporate philosophy (of strengthening sustainability and social responsibility
known to every party concerned within the Group.
To facilitate this goal and achieve the MLC2030 Visionsee page 18), the Company is engaged in the(following specific measures in its management plan, andendeavors to disseminate them at workplace meetingsand other occasions.

Specific Measures

1. Strengthening the business foundations of the priorityareas
2. Establishing a system that leverages new technologies
3. Maintaining competitiveness in the port and harbortransportation business4. Developing complexes and other facilities for the realestate business and improving the organizational
structure thereof to strengthen operational capabilities
5. Bolstering production efficiency through more efficient
operational processes and other means
6. Improving operational conditions to reform workstyles andcreate innovation
7. Increasing shareholder returns
8. Promoting CSR-oriented management
In executing the specific measures above, the Group
complies with the seven principles of social responsibility
under the Guidance on Social Responsibility. The Group
companies have stipulated the Code of Conduct in linewith the seven principles, and their employees strive toself-check and confirm their behavior by using the CSR &Compliance Handbook.

Review of goals, standards, etc.
Deliberating at the CSR and Compliance
Committee (meetings held in March)
To promote CSR activities in the Group, the CSR andCompliance Committee was established in September
2006.
In fiscal 2020, the committee met in March 2021 anddeliberated on improvements to compliance based on the
self-check of the status of compliance with the Code of
Conduct, as well as on trends and measures in ourinternal reporting system and matters to be addressed in
the following fiscal year and thereafter.
From fiscal 2021, the existing CSR and Compliance
Committee and the Internal Control Committee will be
reorganized so that CSR is transferred to the
Sustainability Committee, and compliance is transferredto the Internal Control and Compliance Committee inorder to further strengthen these initiatives.

CSR and Compliance Committee

Entrenchment of the compliance ofstandards, etc.
Disseminating the awareness of compliance
The Group endeavors to instill awareness of compliancebased on corporate ethics in every employee through theemployee’s self-check on the status of complying with theCode of Conduct, which was formulated as the social
norms for employees in executing their duties, as well as
by thoroughly promoting training on compliance.
The Board of Directors of the Company resolved the“Basic Policy on the Improvement of an Internal Control
System” to ensure the appropriate execution of duties byexecutives and regular employees and theappropriateness of corporate affairs.
Actual performance data on the compliance situation of
the Code of Conduct may be viewed on Mitsubishi
Logistics’ Web site in the “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

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Initiatives for ESG Management and the SDGs—Organizational GovernanceBusiness processes are confirmed via internal audit
The internal audit of the Company is performed mainly by the
Audit Division in accordance with the internal audit regulations
and the internal audit plan. The audit operation is supported bybranch auditors and audit assistants positioned at the Head
Office and respective branches. The purpose of the internal
audit is to precisely grasp the status of corporate affairs and thefinancial position so that it can be used for prevention of fraud
and errors, and rationalization of management and improvementof business operations and raising operating efficiency. The
Audit Division reports the results of audits regarding theCompany and subsidiaries to the management team. It also
supports the follow-up checks on any issues noted in the audit
results, if any, and reports the results to the management team.
The Audit Division keeps close contact with the corporate
auditors and provides them with internal audit information tocooperate with the corporate auditors’ audits.

Confirmation of the implementation
process of action plans
Confirming the appropriateness ofoperations via internal control
The Board of Directors of the Company resolved the “Basic
Policy on the Improvement of an Internal Control System” toensure the appropriate execution of duties by executives andregular employees and the appropriateness of corporate affairs.
Furthermore, the Company improves the systems
necessary for ensuring the appropriateness of financial
reporting and prepares and submits the Internal Control
Report regarding the evaluation of the effectiveness ofinternal control relating to financial reporting in accordancewith the Financial Instruments and Exchange Act.

Confirming the process for bonded operations, etc.,
under the Authorized Warehouse Operators’ Program
The Authorized Warehouse Operators’ Program, one of the
AEO Systems*, is a system for certifying managers of bonded
warehouses and bonded factories as authorized warehouse
operators after they meet set conditions concerning complianceand other regulations. These authorizations ensure preferential
treatment such as simplified procedures and exemptions frompermit fees, etc. and the Company received approval as an
authorized warehouse operator and further enhanced
compliance activities in customs-related processes and all otherimport/export services. In April 2016, the authorization was
renewed, and we will continue to strive to provide highly reliableand dependable logistics services for our customers.
Meanwhile, the Company acquired certification as Authorized
Customs Brokers under the AEO System in June 2017, andeach Group company on the dates shown in
the table. An authorized customs broker is acustoms clearance operator, subject tovarious preferential privileges, which isauthorized by the customs office to arrange
for security management system regarding
cargo and companywide compliance system.
The Company strives to further improve thequality of customer service going forward.
Certificate of AEO Customs
Broker (The Company)

26

Mitsubishi Logistics Integrated Report 2021■ Status of acquisition of certification as Authorized
Customs Broker by the Group
Company nameDate of certification

Monryo Transport Corporation

September 2012

Keihin Naigai Forwarding Co., Ltd.

June 2014

Ryoyo Transportation Co., Ltd.

April 2017

Mitsubishi Logistics Corporation

June 2017

Naigai Forwarding Co., Ltd.

February 2018

Fuji Logistics Co., Ltd.

May 2018

Unitrans Ltd.

November 2019

* Systems that provide measures that ease and simplify customs procedures forbusiness operators who have constructed cargo security management
frameworks in compliance with laws and regulations, aiming both to secure andsmoothen international logistics security, as well as to enhance Japan’sinternational competitiveness.
The policy for implementing and constructing AEO Systems is set within the SAFE
Framework of Standards to Secure and Facilitate Global Trade adopted by the
WCO (World Customs Organization). Japan’s AEO Systems comply with said policy.
(Source: Japan Customs Web site)

Supporting overseas business from theperspective of the entire GroupIn April 2021, we reorganized the International Business
Coordination Chamber as the Overseas Business Planning& Coordination Division, and established an overseas
business team with the aim of improving and strengthening
the management system for our overseas business in
response to globalization.
The Company has until now been providing support for the
corporate divisions of each overseas-affiliated company
through the International Business Coordination Chamber, andhas worked to ensure appropriate business activities overseas.
Going forward, we will review and provide support for thestrengthening of the compliance systems and risk
management systems at each overseas-affiliated company,
led by the new team, consider and evaluate investment
projects overseas, and improve corporate governance for all
overseas Group companies, and will focus on strengthening
the management systems necessary for the growth of theCompany’s overseas business.

VOICE
Aiming to create an environment
for expanding the Group’s overseas
business
Seito Tamura
Overseas Business Planning & Coordination Team,
Overseas Business Planning & Coordination Div.
Since being assigned to the International Business Coordination
Chamber in September 2020 prior to its reorganization, I havebeen in charge of the performance management of overseasaffiliated companies and the International Transportation Business
Division, support for implementing various measures, and supportand verification for investment projects. Currently, we continue tospend time supporting expatriates as part of our response to
COVID-19 but, going forward, we plan to undertake initiatives tostrengthen internal control, such as by reviewing and providing
support for the strengthening of the compliance systems and risk
management systems of overseas affiliated companies.
I think that expanding business and strengthening internal
control overseas are two sides of the same coin. In preparation
for future business expansion, I am working hard every day withmy seniors to acquire qualifications related to internal control.

Promotion of CSR for every employee
CSR & Compliance Handbook
The Group prepared the Mitsubishi Logistics Group CSR &Compliance Handbook (63 pages in A5
format) to nurture the awareness of each
employee on CSR and compliance. The
handbook was distributed to all executives
and employees within the Group in
January 2012 for their daily reference.
We position the handbook as a starting
point to help them address small questions
and significant issues in their routine
CSR & Compliancebusiness operations.
Handbook

CSR and Compliance Awareness Survey
The Company and domestic Group companies provide
Web-based surveys on awareness based on the Mitsubishi
Logistics Group CSR & Compliance Handbook and theEnvironmental and Social Report to disseminate theunderstanding of CSR and compliance. The surveys aim toincrease employees’ awareness by providing occasions inwhich every employee thinks of familiar issues and finds theanswers.

Training on CSR and Compliance
As measures to address the status of compliance with theCode of Conduct and any issues noted in the internal audit
results, we endeavor to establish good working environments
by disseminating and entrenching our corporate philosophy
and the Code of Conduct and promoting CSR.
As for compliance, we hold training sessions concerningcompliance with the Act against Delay in Payment of
Subcontract Proceeds, etc. to Subcontractors with anemphasis on training and confirmation regarding themethods for managing and handling relevant documents,
and the obligations and prohibitions of the main
subcontracting enterprise.
Actual performance data on the CSR and complianceawareness survey and the training on CSR andcompliance can be viewed on Mitsubishi Logistics’ Website in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Emphasis on communication
Timely and appropriate news releases
As the Group emphasizes the principles of social
responsibility such as accountability and transparency inorganizational decision making, news releases on businessactivities are disclosed at the appropriate time and in theappropriate manner.
You may view the news releases on the actual performancedata on Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Information disclosures
We have an IR information page on the official Company
website. We use the information page to provide IR
information, such as management planning and policy,
stock information, an IR calendar, financial data, and IR
information such as flash reports, securities reports, English
version of annual reports, business reports, andconsolidated results briefings.
We also have an English version of the IR information
page available for overseas shareholders and investors, andare working towards more access to information disclosurefor overseas and international stakeholders.

Dialogue between shareholders/investors,
analysts and top management● Easy-to-understand shareholders’ meetings
When we hold a shareholders’ meeting, we strive to provide
easy-to-understand information for the convenience ofattending shareholders by using video business reports withnarration.
● Results briefing
The Company holds results
briefings twice a year (Mayand November) for investors
and analysts (the May 2020
results briefing wascanceled due to COVID-19).
In addition to the
Results briefing for analysts
explanation of the settled
accounting results, the top
management of the Company explains management
policies and the progress of management plans, conducts
Q&A and transmits a variety of management information.
We are active in encouraging dialogue with market players
not only through transmission of the information desired byinvestors and analysts but also by integrating the feedbackof useful views therefrom in its actual business judgment.

You may view the materials for the results briefing on
Mitsubishi Logistics’ Web site in the IR Information page.
HOME ▶ INVESTOR RELATIONS ▶ IR Information ▶ Presentation

Internal reporting system
To ensure early detection of actions that violate legal
ordinances or corporate regulations, as well as actions thatare in danger of violating such rules, the Mitsubishi Logistics
Group has established a corporate ethics help line (Contact:
CSR・Compliance Team, General Affairs Division) as aninternal whistleblowing and consultation mechanism toreinforce compliance management.
To raise the degree of recognition and encourage use of
the system, at the time of the “Check of the Compliance of
the Code of Conduct” in December 2020, we examined
whether all executives and regular employees of the Group
were familiar with our internal reporting system and whether
they intended to use the system. Consequently, it was
confirmed that almost all the respondents expressed anaffirmative opinion, suggesting widespread recognition of
the system.

Mitsubishi Logistics Integrated Report 2021

27

Initiatives for ESG Management and the SDGs—Organizational GovernanceIntroduction of Officers

Directors with an asterisk (*) are Representative Directors.

Directors

Masao Fujikura (*President) March 20, 1959

Hiroshi Nishikawa (Managing Director) April 10, 1960

April 1982
June 2012
April 2015
June 2016
April 2017
April 2018
June 2021

April 1983 Joined the Company
April 2015 General Manager, Tokyo Branch
April 2017 General Manager, Warehousing and Distribution Business Division
June 2018	Director and General Manager, Warehousing and Distribution
Business Division
April 2019	Managing Director; and General Manager, International Business
Coordination Chamber
April 2021	Managing Director; and General Manager, Overseas Business
Planning & Coordination Division
June 2021 Managing Director and Managing Executive Officer (current position)

Joined the Company
General Manager, International Business Coordination Chamber
General Manager, Osaka Branch
Director and General Manager, Osaka BranchManaging Director; and General Manager, Osaka BranchPresident
President and Chief Executive Officer (current position)

Hitoshi Wakabayashi (Managing Director) January 22, 1960
April 1982 Joined the Company
June 2012 General Manager, Warehousing and Distribution Business Division
April 2015 Chairman of the Board of Mitsubishi Logistics China Co., Ltd.
April 2016	General Manager, Warehousing and Distribution Business Division of
the Company
June 2016	Director and General Manager, Warehousing and Distribution
Business Division
April 2017 Managing Director
April 2019	Managing Director; and General Manager, Warehousing andDistribution Business Division
April 2020 Managing Director
June 2021 Managing Director and Managing Executive Officer (current position)

Yasushi Saito (Managing Director) October 16, 1958
April 1982 Joined the Company
June 2011 General Manager, Accounting & Financing Division
June 2016 Director and General Manager, Accounting & Financing Division
April 2018	Managing Director; and General Manager, Accounting & Financing
Division
June 2018 Managing Director
June 2021 Managing Director and Managing Executive Officer (current position)

Shinji Kimura (Managing Director) July 18, 1958
April 1982 Joined the Company
April 2014 General Manager, Personnel Division
April 2016	General Manager, General Affairs Division, Corporate Communications
Chamber and Personnel Division
June 2017	Director and General Manager, General Affairs Division, Corporate
Communications Chamber and Personnel Division
April 2018 Managing Director
April 2020 Managing Director; and General Manager, Technical Division
April 2021 Managing Director
June 2021 Managing Director and Managing Executive Officer (current position)

Saburo Naraba (*Managing Director) October 17, 1958
April 1982
April 2014
April 2017
June 2018
April 2019
June 2021

28

Joined the Company
General Manager, Nagoya Branch
General Manager, Tokyo Branch
Director and General Manager, Tokyo BranchManaging Director
Managing Director and Managing Executive Officer (current position)

Mitsubishi Logistics Integrated Report 2021

Tatsuo Wakabayashi (Outside Director) September 29, 1952
April 1977
Joined Mitsubishi Trust and Banking Corporation
April 2012
President of Mitsubishi UFJ Trust and Banking Corporation
April 2013	Deputy Chairman of Mitsubishi UFJ Financial Group, Inc.
December 2013	President and Chairman of Mitsubishi UFJ Trust and Banking
Corporation
Director; Deputy Chairman of Mitsubishi UFJ Financial Group, Inc.
June 2015
April 2016	Chairman of Mitsubishi UFJ Trust and Banking Corporation; Directorof Mitsubishi UFJ Financial Group, Inc.
June 2016Retired from Director of Mitsubishi UFJ Financial Group, Inc.
April 2020	Senior Advisor of Mitsubishi UFJ Trust and Banking Corporation(current position)
June 2019
Director of the Company (current position)

Toshifumi Kitazawa (Outside Director) November 18, 1953
April 1977 Joined The Tokio Marine and Fire Insurance Co., Ltd.
April 2016	President & Chief Executive Officer of Tokio Marine & Nichido Fire
Insurance Co., Ltd.
June 2016 Director of Tokio Marine Holdings, Inc.
April 2019	Vice Chairman of the Board of Tokio Marine & Nichido Fire InsuranceCo., Ltd. (current position)
June 2019 Retired from Director of Tokio Marine Holdings, Inc.
June 2019 Director of the Company (current position)

Tadaaki Naito (Outside Director) September 30, 1955
April 1978 Joined Nippon Yusen Kabushiki Kaisha
April 2015	President, Representative Director, President Corporate Officer of
Nippon Yusen Kabushiki Kaisha
June 2019	Chairman, Director, Chairman Corporate Officer of Nippon Yusen
Kabushiki Kaisha
June 2020	Chairman, Director, Chairman and Executive Officer of Nippon Yusen
Kabushiki Kaisha (current position)
June 2020 Director of the Company (current position)

Tetsuya Shoji (Outside Director) February 28, 1954
April 1977 Joined Nippon Telegraph and Telephone Public Corporation
June 2009	Director of the General Affairs Department of Nippon Telegraph andTelephone Corporation
June 2012 Senior Executive Vice President of NTT Communications Corporation
June 2015 President and CEO of NTT Communications Corporation
June 2020	Corporate Advisor of NTT Communications Corporation (current position)
June 2021 Director of the Company (current position)

Kazuko Kimura (Outside Director) May 1, 1951

Tatsushi Nakashima (Director) November 29, 1957

April 1976
Joined the Ministry of Health and Welfare
July 1996	Drug Management and Policy Department of World HealthOrganization (on secondment)
July 1999	Organization for Pharmaceutical Safety and Research (onsecondment)
April 2000	Professor of Drug Management and Policy Department, Institute ofMedical, Pharmaceutical and Health Sciences, Kanazawa University
April 2017	Professor Emeritus of National University Corporation Kanazawa
University (current position)
October 2017	Specially Appointed Professor of Graduate School of Medical
Sciences of National University Corporation Kanazawa University(current position)
June 2021
Director of the Company (current position)

April 1976 Joined the Company
April 2017 General Manager, Nagoya Branch
June 2018 Director and General Manager, Nagoya Branch
April 2020 Director and General Manager, Yokohama Branch
June 2021	Director, Senior Executive Officer and General Manager, Yokohama
Branch (current position)

Akira Yamao (Director) June 13, 1960
April 1983 Joined the Company
April 2015 General Manager, Planning & Business Coordination Division
June 2019	Director and General Manager, Planning & Business Coordination
Division
April 2020 Director and General Manager, Osaka Branch
June 2021	Director, Senior Executive Officer and General Manager, Osaka
Branch (current position)

Corporate Auditors

Tohru Watanabe (Standing Corporate Auditor) (full time)

Yohnosuke Yamada (Outside Corporate Auditor) May 2, 1959

June 24, 1949

April 1989	Registered as lawyer (Dai-Ichi Tokyo Bar Association)
Joined Nagashima & Ohno (currently Nagashima Ohno &Tsunematsu)
October 1989 Joined Yamada Brothers (currently Yamada, Goya & Suzuki) (current
position)
June 2004 Corporate Auditor of the Company (current position)

April 1972
Joined the Company
June 2001
General Manager, Accounting & Financing Division
June 2003	Director; Assistant Managing Officer (responsible for Accounting &Financing) and General Manager, Accounting & Financing Division
June 2004	Managing Director; and General Manager, Accounting & Financing
DivisionManaging Director
June 2006
June 2008
Senior Managing Director
October 2010	Senior Managing Director; and General Manager, Planning &Business Coordination Division
January 2011 Senior Managing Director
Standing Corporate Auditor (full time) (current position)
June 2011

Mikine Hasegawa (Corporate Auditor) (full time)
July 5, 1961
April 1985
Joined Mitsubishi Corporation
June 2010
CFO of Mitsubishi Corporation India Pvt. Ltd.
November 2013 Corporate Auditor of MC Healthcare, Inc.
June 2016
Corporate Auditor of Mitsubishi Corporation Life Sciences Limited
April 2019	Retired from Corporate Auditor of Mitsubishi Corporation Life
Sciences Limited
Attached to Corporate Division of Mitsubishi Corporation
May 2019
June 2019
Corporate Auditor of the Company (full time) (current position)

Takao Sato (Outside Corporate Auditor) July 17, 1954
March 1988 Registered as Certified Public Accountant
May 2003 Representative Partner of Asahi & Co. (currently KPMG AZSA LLC)
July 2007 Board Member of KPMG AZSA & Co.
June 2009 Retired from Board Member of KPMG AZSA & Co.
July 2014 Auditor of KPMG AZSA LLC
June 2016 Retired from Auditor of KPMG AZSA LLC
July 2017 Representative of Takao Sato Accounting Office (current position)
June 2020 Corporate Auditor of the Company (current position)

Junya Miura (Corporate Auditor) July 22, 1959
April 1983 Joined the Company
June 2016 General Manager, Audit Division
June 2020 Corporate Auditor of the Company (current position)
June 2020	Full-time Corporate Auditor of Ryoso Transportation Co., Ltd. (current
position)

Executive Officers (as of June 30, 2021)
Senior Executive Officer
Akio Miura (General Manager, Nagoya Branch)

Executive Officer

Senior Executive Officer

Executive Officer

Masanori Maekawa

Munenori Kimura (General Manager, Corporate Planning Division)(General Manager, General Affairs Division and Corporate Communications Chamber)

Takashi Mukai (General Manager, Real Estate Division)

Executive Officer

Executive Officer

Hidechika Saito

Manabu Kusuyama (General Manager, Information Systems Division)(General Manager, International Transportation Business Division)

Executive Officer

Naoyuki Inamo (General Manager, Accounting & Financing Division)

Mitsubishi Logistics Integrated Report 2021

29

Initiatives for ESG Management and the SDGs

Respect for
Human Rights
Apr. 2021: New employee training

Respecting human rights is the basis for complying with laws and regulations and fulfilling social responsibility.
Regarding the respect for human rights, the Group recognizes and addresses such issues as improvement of employees’
awareness of human rights.

Improvement in the awareness ofhuman rights

Respecting human rights throughbusiness activities

Striving to disseminate the awareness ofrespect for human rights with every employee
by establishing a dedicated promotion system

Outsourcing works to a provider ofcontinuous employment support service,where people with disabilities are working

The Company is committed to educating employees onhuman rights issues with the aim of creating a “positive
worksite atmosphere in which every employee’s humanrights are respected and personal competence andpersonality can be fully demonstrated.”Specifically, every year the Company offers a humanrights awareness course for 1–2 hours in the stratified
training curriculum under the established human rights
training promotion system.
In addition, we hold group-style human rights
awareness training for new employees every year. (Thetraining in fiscal 2020 was canceled due to COVID-19.)
At the training sessions, participating employees not
only listened lectures, but also exchanged views on
diverse concrete examples to deepen theirunderstanding.
The Company endeavors to raise the awareness ofhuman rights by inviting slogans for human rights
awareness even to loaned or dispatched staff members.
In parallel with this approach, we have established a
helpline dedicated to harassment issues that takes
initiatives to prevent or resolve various worksite
harassment cases.

The Company outsources the digitalization process forin-house documents and data as a business to Japan
Church World Service, Inc., Tokyo Itabashi Welfare
Factory where continuous employment support service isprovided to people with disabilities, who may havedifficulties in conventional work settings.
The Company considers that this outsourcing will
enable more people with disabilities to work on acontinuous basis and play active roles in society whileleading independent lives.

Actual performance data on human rights training can beviewed on Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended
version30

Mitsubishi Logistics Integrated Report 2021■ Slogans for human rights awareness(some of the slogans submitted to the Company)
Slogan for human rights awareness (Employees’ section)

Consider your words from the other person’s perspective

VOICE
Regarding corporate businessand human rights
Hiroki Okita
Human Resources Dept., Human Resources Div.
In recent years, social interest in human rights has increased significantly,
and many of the 17 SDGs incorporate human rights-related goals suchas eliminating poverty and achieving gender equality.
With regard to the relationship between business enterprises andhuman rights, the National Action Plan on Business and Human Rights(2020-2025) was formulated by the relevant ministries and agencies in
October 2020. The plan calls for business enterprises and the Japanese
government to seriously deal with the human rights issues of
stakeholders involved in corporate activities in line with the globalizationof corporate activities by identifying and preventing the risk of humanrights violations, including forced labor and discrimination in overseas
supply chains.
For the Group, in addition to our basic policy of conducting humanrights trainings and distributing educational materials and tools, etc. that
we have been working on to date, we will carry out further enlightenment
activities in order to promote the understanding of business and humanrights and to recognize various current human rights issues.

Appropriate Working
Environment
1st floor South Entrance,
Misato Distribution Center No. 2 phase 2, Tokyo Branch

An appropriate working environment serves to stabilize employees’ living standards, is the source of meaning in
employees’ lives and is indispensable for safety and health, productivity growth, human resource development and soforth. Regarding the appropriate working environment, the Group recognizes and addresses such issues as “Respect oflabor-management relations,” “Employment and the importance of the employment relationship,” “Rewarding andfriendly working conditions,” “Ensuring the safety of workers” and “Human resource development and training.”

Respect for labor-management relations
Having close communications with the labor union
The collective labor agreement entered into between the
Company and the Mitsubishi Logistics Union stipulates
the responsibility of the Company and that of the union as
follows on the stance of labor-management cooperation.
1. (Company’s Responsibility)
The Company shall proactively strive to maintain andimprove the working conditions and promote thewelfare of employees to improve the status of
employees and ensure stable livelihoods.
2. (Union’s Responsibility)
The labor union shall strive to maintain public order at
the worksite and promote the working capabilities of
its affiliated employees, as well as fully cooperate with
the Company for the growth of the Company’sbusiness based on democratic foundations.

Labor-management consultations and negotiations arehandled at the Management Conference, which is
attended by representatives of both parties.
There are two types of Management Conference: theCentral Management Conference, which is held between
Head Office and the union’s headquarters, and the
Operating Site Management Conference, which is held
between each branch and each lodge. Each conference
meets once per month.

Employment and the importance ofthe employment relationshipEndeavoring to ensure human resources
systematically and stably while respecting
equal employment opportunities and diversity
In recruiting employees, our basic policy is to respect equal
employment opportunities and diversity.
In our recruiting activities, we have introduced an open
entry system without making any distinction as regards theschool of graduation or faculty that takes into account thefair employment of applicants from a long-term perspective
to systematically and stably ensure human resources.
We offer a wide range of opportunities to both new andprofessional or experienced applicants by making the mostof the Company’s Web site and various kinds of PR media.
■ Status of employees (as of the end of March 2021)
Status in fiscal 2020
Number of regular employees(consolidated)

4,598

Number of temporary employees(consolidated)

2,570*Group companies have no statistical data regarding employees’ average age and years of employment.

Number of regular employees(non-consolidated)

996(636 men / 360 women)

Average age(non-consolidated)

39.7 years(men: 39.5 years; women: 40.1 years)

Average years of employment(non-consolidated)

15.7 years(men: 15.1 years; women: 16.8 years)

Number of temporary employees(non-consolidated)

805

Status of new graduate recruits(joining the Company in April 2021)

Status of mid-career recruits (joining theCompany between April 2020 and March 2021)

University graduates

35

University graduates

13

Male university
graduates

21

Male university
graduates

12

Female university
graduates

14

Female university
graduates

1

Junior college/
Vocational college
graduates

0

Junior college/
Vocational college
graduates

1

High school
graduates/Others

3High school
graduates/Others

2

Total

38

Total

16

Status of new graduate recruits retained(New graduate recruits joining
the Company in April 2018)

No. of recruits retained as of April
2021 (percentage)

Men andwomen total

47

45 （95.7%）

Men

29

28 （96.6%）

Women

18

17 （94.4%）

Mitsubishi Logistics Integrated Report 2021

31

Initiatives for ESG Management and the SDGs—Appropriate Working Environment

Rewarding and friendly working conditions
Strive to improve the environment in which both
employees and the Company can raise mutual values
The basic philosophy of the Company’s personnel policy
is to assist its employees to grow and improve their worklife balance and to assert that both employees and theCompany can raise mutual values through thesustainable growth of the Company.
To realize this philosophy, the Company endeavors to
improve worksite environments so that employees candemonstrate their individuality and competence to theutmost extent with improved motivation and better
workplace environments, through a variety of personnel
and educational systems.

Streamline the personnel system in the pursuitof creating worksites where employees candemonstrate their individuality and competence
The Company strives to improve worksite environments inwhich every employee can fully demonstrate his/herindividuality and competence.
● Regional system for general employees

In order to achieve the MLC2030 Vision, it is necessary to
encourage the active participation of employees more thanever, which requires strategic human resource development
and human resource allocation.
As a characteristic of the Company’s Logistics Business,maintaining the certainty and quality of operations at eachsales office, which are our logistics sites, forms the basis of
the services we provide to our customers, and the stableallocation of employees who have the experience andknowledge of those operations is essential.
In recent years, in view of the fact that there have beencases where general employees are unable to accept
transfers due to family circumstances, etc., and it is difficult
for them to carry out their duties without limiting the areas inwhich they work, we have divided general employees into
“general employees (no limits on workplace regions)” and“regional general employees (limits on workplace regions)”
whose aim is to strengthen the on-site and sales capabilities
in each region, in order to secure and develop future
management personnel and ensure a work system that ismore suitable for employees to demonstrate their abilities.
General employees
Engage in a wide range of corporate operations in a varietyof regions including overseas as core employees and are
responsible for facilitating business growth and management.
Regional general employees
Engage in a wide range of corporate operations mainlyin certain areas and are responsible for facilitating
business growth and management.

Although screening is necessary, the system allows
employees to switch between categories in accordancewith their circumstances. It is expected that this willcontribute to improvements in employee satisfaction.

32

Mitsubishi Logistics Integrated Report 2021

● Self-declaration system

According to the self-declaration system, the Company’s
employees declare their satisfaction rating with theircurrent duties and career plan, among other things, oncea year. The declaration includes items not only relating toemployees’ business duties but also every employee’s life
plan. The content of the declaration is used for personnel
transfers and the career development program.

● Evaluation and treatment of employees
The Company treats employees in accordance with fair,transparent and well-received appraisal systems. Directinterviews between managers and subordinates, which areheld three times a year (at the time of target setting, midyear
retrospection and year-end retrospection), are especiallyemphasized, enabling managers and subordinates todeepen communication with each other. The evaluation
results are used for an appropriate division of labor within
the business unit and advice on career planning.

Execute industrial safety and health-related
measures to enhance employees’ good healthTo effectively fulfill its obligation of safety, which is requiredof every corporation, the Company proactively takes
initiatives to maintain and promote employees’ health.
● Periodic medical checkup

A medical checkup is conducted once a year that focuseson tests for lifestyle-related diseases. Although long
working hours have become a social problem in recent
years, the Company has implemented a framework tominimize the health risks of employees due to a heavy
workload through enhanced interview guidance fromindustrial physicians to those with long working hours.

● Health promotion

Health promotion seminars are held for the purpose ofmaintaining good health and improving the lifestyles of
employees. (The seminars were canceled in 2020 due to
COVID-19.) At these seminars, simple aerobics dance
programs are offered to encourage employees to engage
in light physical exercise in addition to lectures (on mental
health and eating habit guidance) given by experts.

Involvement in mental health activities focusing on
precautionary measures and preventing recurrence
The Company considers it important to support every
employee in having a purposeful life by ensuringsystematic and constant care for his/her mental health.
To promote mental health care in accordance with the
Ministry of Health, Labour and Welfare’s guidelines formaintenance and promotion of mental health for workers,
the Company has implemented a variety of initiatives
such as reinforcement of in-house education and training,
cultivation of dedicated staff in charge at operating sites,
implementation of the stress check system based on the
Industrial Safety and Health Act and improvement of
networks via collaborations with external professionalorganizations.

■ Acquisition results for various leave systems
SystemChild-care leave

Results (number of beneficiaries)

Description

FY2016 FY2017 FY2018 FY2019 FY2020

Leave of absence is allowed for a desired period until a child becomes 2 years old.

Reduced working hours Working hours may be reduced by up to 2 hours per day for raising a child.

8

7

13

10

9

22

25

28

28

30

Nursing care leave

Leave of absence is allowed for a desired period within one year to take care of afamily member in need of nursing care.

0

0

0

0

0

General care leave

Paid leave for nursing care of a child (up to 10 days per year).

29

38

34

31

20

Family care leave

Paid leave for nursing care of a family member in need of nursing care (up to 10
days per year).

4

4

5

10

10

* The number of beneficiaries in the child-care leave and nursing care leave are calculated based on the year employees started taking their leaves.

Promotion of Workstyle Reforms
At the Company, we have constructed a mechanism to monitor
and manage the appropriate number of working hours based on
information on working hours in the attendance management
system, where employees and their supervisors can check theirworking situation at any time. We also considered that a change of
attitude was necessary to bring about a decrease in overtime work,and held briefing sessions for managerial employees aimed at
reducing overtime. This attitude was disseminated to employees
through measures such as worksite meetings. In addition, theCompany and labor union regularly confirm the amount of overtime
work and number of days of leave taken by employees, and share
information on effective initiatives such as flextime and no-overtime
day through forums such as the Management Conference and theCommittee on the Improvement of Working Hours, etc.

Promoting the work-life balance to support thesound development of the next-generation children
Pursuant to the implementation of the Act on Advancement of
Measures to Support Raising Next-Generation Children, theCompany formulated the “Ordinary Business Owner Action Plan”
and implemented a child-care leave system, a reduced working
hours system, a nursing care leave system, a general care leave

VOICE
Using the reduced working
hours system
Rieko Kawanishi
Planning Team, Corporate Planning Div.
I have been using the reduced working hours system since I
returned to work after giving birth to my daughter, and am
currently working from 9:30 a.m. to 4:30 p.m., which is one
hour less than the prescribed working hours.
The reason that I am using the system is that I had to work
shorter hours due to the child-care hours at the nursery school,
but the fact that many of my supervisors are using this system
also encouraged me to use it.
I feel that it is thanks to this reduced working hours systemthat I can balance housework and child care with my job
without putting pressure on my small daughter and also giving
myself some space both timewise and mentally.
I realize that working under time-constrained conditions is only
possible with the understanding and supervision of those aroundme, and am extremely grateful to everyone in my workplace.

system and a family care leave system to assist with thecoexistence of employees’ working life and home life.
Furthermore, the Company encourages the enhanced use ofannual paid vacations to reduce working hours in a year and has
introduced a systematic granting system (six days per year) ofannual paid vacations under labor-management collaboration.

VOICE
Taking child-care leaveTakeshi Seki
International Transportation Business Dept. B, Kobe BranchPartly because my wife lives in Tokyo and I was on a solo
assignment, when my wife gave birth, I temporarily left my post
and took one month of child-care leave in addition to paid leave.
When I took child-care leave, my supervisors and colleagues
shared the duties for which I was responsible but I think it wasalso an opportunity to “visualize” and share my duties by creating
hand-over materials for the work for which I had been solely
responsible.
After my wife gave birth, we were caught up with feeding thebaby and changing diapers, but we were able to ensure we each
had time to ourselves by sharing the housework and setting times
at night when one of us was responsible for looking after our child.
Although it was a very busy time for my department, taking
child-care leave enabled me to relax and interact with my child,and provided me with valuable time for us to spend as a family.
I feel extremely grateful to my supervisors and colleagues forsupporting me during this time.

VOICE
Having taken general care leave
Yui Komatsu
Warehousing & Distribution Business Dept. C, Tokyo Branch
I have a daughter who goes to nursery school, so I sometimes
take general care leave. There have been times when mydaughter felt unwell the entire day and I have had to continuously
be away from my workplace, but thanks to everyone in mydepartment and sales office, I was able to concentrate on looking
after her with peace of mind.
I think I may take general care leave again in the future but
would like to accumulate knowledge so that instead of only being
helped by those around me, I can also provide support to thosesame people.

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Initiatives for ESG Management and the SDGs—Appropriate Working Environment

Promoting welfare measures to help
employees cultivate the energy to work

Obtained a loan under the DBJ Employees’
Health Management Rated Loan Program

A variety of systems are available in compliance with thethree catchphrases of “Provision of security,” “Recreation”
and “Promotion of residential house acquisition” for thepromotion of employees’ welfare.

In February 2019, the Company was rated by theDevelopment Bank of Japan Inc. (DBJ) under the DBJ
Employees’ Health Management Rated Loan Program,and obtained a loan based on this rating. Under the
program, DBJ evaluates corporate initiatives related to
employee health, and loans money under favorable
conditions to outstanding companies in this area.
In addition to steady initiatives aimed at compliance withhealth and safety laws and regulations, the Company was
also highly rated for actively implementing measurescontributing to the maintenance and improvement of
employees’ mental and physical health, such as organizing
health seminars, as well as the continuous promotion ofbusiness improvement, through measures such as thecommendation system for improvement activities.
Going forward, we will continue to strive to improve thehealth of employees through this system and other initiatives.

Major welfare programs of the Company:
1. Provision of security
Retirement benefits, corporate pensions, family allowance,
housing allowances, condolence money, celebration of a birth,the ESOP (Employee Stock Ownership Plan) association,group insurance, the reserve for pension and asset formation,
multipurpose accommodation loans and the granting ofcompany-owned houses to employees via job transfers
2. Recreation
Recreation facilities, in-house sports events (baseball, tennis
and futsal), the Mitsubishi firms’ martial arts tournament,
refresh leave (long-service and midlevel workers)
3. Promotion of residential house acquisition
Reserve for house acquisition and asset formation, in-houseloans and tie-up loans

To ensure employment opportunities for theelderly, motivated retiring employees are provided
with places to demonstrate their competence
In terms of employment opportunities for the elderly, theCompany has strived to guarantee the employment of
employees up to 62 or 63 years old before theestablishment of the related laws through measures suchas a job placement service to help them with reemployment
at subsidiaries or affiliates and the reemployment of thosewith expertise in certain business fields.
In response to the establishment of the relevant laws,
we established our continuing employment system toensure that applicants can continue to work up to 65
years of age under certain criteria, and the system has
been applied to around 90% of those applicable.

Improving access in the work environment toincrease the employment of people with disabilities
There are physically challenged employees who work indiverse operations at the Company. However, as of June 1,
2020, the Company’s employment rate of said employees
was 1.84%, lower than its legally mandated 2.20%
employment ratio (at the time). We will continue to steadilystrengthen improvements of the worksite environment inwhich people with disabilities can easily demonstrate theircapabilities and aptitude, aiming to reach our legally
mandated employment ratio as soon as possible.
■ Employment ratio of employees with disabilities

34

June
2015

June
2016

June
2017

June
2018

June
2019

June
2020

Number of employeeswith disabilities (actual)

16

14

14

14

15

15

Employment ratio (%)

2.05

1.86

1.83

1.80

1.92

1.84

Mitsubishi Logistics Integrated Report 2021

Ensuring the safety of workers
Ryoso Transportation Co., Ltd. acquired“comfortable workplace certification” in its
trucking business
Ryoso Transportation Co., Ltd. (a company thatspecializes in overland transportation that is in charge of
the Company’s overland transportation business) wasawarded one star at all its operating bases in the trucking
business field under the “comfortable workplacecertification system” for the trucking business managed
by the Ministry of Land,
Infrastructure, Transport andTourism.
The system was established infiscal 2020 as part of efforts toaddress the shortage of drivers
in the truck, bus and taxi
businesses. Two star and threestar standards are scheduled to
be announced in the future.
Ryoso Transportation Co., Ltd.
will continue to create acomfortable work environment
Comfortable Workplace
for truck drivers, and aims to
Certification System
Registered Certificate
secure stable human resources.

Establishing a Safety Promotion Department inorder to strengthen initiatives to promote safety

Implemented countermeasures against
COVID-19 to continue business operations

Until now, we have been making efforts to ensure thesafety and raise the safety levels of employees of theCompany and our operating companies in our logistics
operations. In April 2021, we established the Safety
Promotion Department within the Human Resources
Division with the aim of strengthening the companywide
safety and health management system.
In addition to providing support for strengthening
safety and health management systems at each branchwith a logistics site, we plan to enhance the system forreporting incidents of industrial accidents, and shareaccident cases and measures to prevent their recurrence.
We will furthermore establish a system to carry out
regular and continuous safety and health education in
addition to the safety and health education conducted byeach office at times of hiring.
Going forward, we will continue to work with otherdepartments to promote safety, including by ensuring thesafety of employees.

In order to prevent the spread of COVID-19, which is
rampant all over the world, we introduced basic
countermeasures including avoiding the 3Cs, maintaining
social distancing, and wearing masks. We also adopted
staggered working hours, working from home, a ban inprinciple on business trips, a ban in principle on meetings
involving food and drinks inside or outside the Company,and health checks, while encouraging various measures
such as hand washing, gargling, and following coughing
etiquette. These efforts enabled us to continue business
operations and protect the health of our employees.
Some distribution centers continued operations basedon a business continuity plan that they had formulated inadvance, while also installing vinyl curtains and acrylic
sheets between employees’ desks, in conference rooms,
in reception rooms and at reception areas for truck
drivers from outsourced transportation companies andother visitors arriving for appointments in order to prevent
droplet infection.
In addition, some overseas offices are dividing offices
into two teams on two floors in an effort to create asystem so that operations will not be halted even if an
infection occurs among one of the teams.
Going forward, we will continue to prepare not only for
COVID-19 infections but also for other infectious
diseases and various disasters in order to ensure thesafety of our employees and continue operations as our
corporate social responsibility.

Striving to conduct industrial safety andhealth activities via collaborations among
operating bases in the pursuit of preventionof industrial accidents
Each branch has an “Industrial Safety and HealthCommittee” (and a Health Committee at Head Office) toshare information with operating bases including
operation-commission and cargo-handling companies
where operations are outsourced. In addition, we strive toprevent industrial accidents by conducting safety andhealth education and safety patrols inside and outside
the facilities.

VOICE
Initiatives for safety promotion
Kazumi Shibata
Safety Promotion Dept., Human Resources Div.
The Safety Promotion Department was established in April
2021 with the aims of “strengthening the safety and healthmanagement system,” “preventing the occurrence of industrial
accidents,” and “establishing a rapid management system forcommunication in the event of an accident.”
Unfortunately, the Company has experienced cases of
personal injury, although there are only a few each year. When
handling cargo of various shapes and sizes and carryingout a wide range of logistics operations from upstream todownstream, including transportation and storage, ensuring
a “safe workplace” for the people working strenuously at theseworkplaces on a daily basis is of the utmost importance.
Safety cannot be achieved without the cooperation of those
who are physically working on-site. While we still have morestudies to conduct, we would like to consider safety together
with the people involved in the field, and take actions thatwill help prevent dangers at an early stage and raise safety
awareness.

Measures adopted by various branches

Warehousing Business Division: Promoting
safety patrols and working to prevent accidents
Each office in the Warehousing Business Division(including some operating bases in the International
Transportation Business Division) conducts safety patrols.
During these safety patrols, employees of the Company
and our operating companies patrol warehouse sites tocheck the status of the facilities and the cargo storage,
while being mindful to prevent the spread of COVID-19. In
addition, they hold meetings depending on the outcomeof the patrols and take measures to prevent accidents inefforts to ensure the safety of employees and cargo.

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Initiatives for ESG Management and the SDGs—Appropriate Working Environment

Overland transportation: Strengthen ensuringsafety with safety measures and the preventionof accidents in the transportation field
Ryoso Transportation Co., Ltd. aims to place the highest
priority on the security of transportation and further ensure
safety through the concerted efforts of its employees, withthe recognition that ensuring the security of freighttransportation is the pillar of its business management.
In addition, Ryoso Transportation engages in the internal
audit of compliance with relevant laws and regulations suchas the Motor Truck Transportation Business Act and theRoad Traffic Act, and steps are taken to ensure thedissemination of information on compliance with these laws
and regulations. Operations are checked at all times from asafety viewpoint, fully recognizing the public nature andimportance of the freight trucking business. As initiatives fordaily accident preventive activities, they also hold safety
conferences, conduct safety patrols and hold head office
and all-branches marketing staff conferences. Furthermore,they conduct thorough checks at all car-allocation bases
using a high-performance alcohol detector unit to check atroll call whether any crew members have been drinking.
Apart from the measures above, they implement initiatives
for industrial safety and health via appropriate instructions
and education given to crew
members based on the
results of regular medical
checkups, to which tests forlifestyle-related diseases
have been added, andregular diagnosis of thedriving competence of the
Alcohol detector unit
truck crews is conducted.

Harbor Transportation Business Division: Promote
the prevention of industrial accidents and conductperiodic disaster prevention drills and meetings
The port and harbor operations inevitably involve a great
variety of cargo handling work in association with various
receipts and deliveries at ports. For smooth and safe cargohandling operations, we implemented various activities
based on the countermeasures prepared by each operatingsite. Furthermore, we hold regular meetings before workand monthly safety and health meetings jointly with relevant
suppliers at which we analyze industrial accidents andcargo accident cases in order to raise awareness of safety
and health and share the intent with all workers.
We are making efforts to improve the businessenvironment and assess conditions. As one example ofmeasures to handle the ever-changing environment, weare reviewing the format of periodically conducted safety
patrols and enhancing inspection items, while being
mindful to prevent the spread of COVID-19. In this manner,
we will always look for new ways to improve safety andhealth, actively implement ordinary safety promotion
activities and remain focused on daily awareness activities.
We believe that those efforts will help prevent industrial
accidents and ensure the safety of workers.
Specific initiatives executed at the respective ports are
summarized in the following table.

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Mitsubishi Logistics Integrated Report 2021

■D escription of specific initiatives undertaken at therespective ports and results/achievements
Description● We hold a briefing meeting before carrying out ship

operations to confirm the content of the intended
operation, check the work uniform including the fluorescentvests and call workers’ attention to safety (daily).
● A safety and health meeting is held jointly with therelevant suppliers (monthly).
● We implemented safety patrols at operating sites jointlywith the relevant suppliers (monthly). (Quarterly joint
patrols are conducted with the participation of superiors.)● We regularly confirm and replenish safety gear (safety
belts for high-place operations, fluorescent safety
armbands, emergency stretchers, etc.).
● Information such as cases of accidents is shared with otheroperators operating at the same harbor terminal at
operators’ liaison meetings, etc., and the content is sharedat safety conferences at our worksites and with suppliers.
● We promote speed limits for dedicated, in-yard trucks,
which are driven within the container yards (via thesuccessive installation of excessive speed lamps).
● We participate in outside workshops and training
sessions (as needed).
Results/Achievements
Unfortunately, one case of a serious industrial accident wasreported in fiscal 2020.
The accident occurred when a single worker fell from a highplace while engaged in cargo handling work on a container
ship. In response, we are implementing improvements,
including the stepped-up use of safety belts for work athigh places, the installation of guardrails to prevent falls,
improvements to work environments, and improved
awareness of risk prediction. In order to prevent suchserious industrial accidents from occurring, we will continue
to place the highest priority on safety and continue
initiatives in collaboration with the newly established Safety
Promotion Department of the Human Resources Division
page 35).
(

Human resources development and training
Endeavor to develop human resources thatcan contribute not only to corporate growth
but also to social development● Concept image of ideal human resources

With the “Code of Conduct” in mind, every employee
aims to undertake a role not only in corporate growth but
also in the development of society by conducting himself/
herself in the following manner.
1. Keep faith in others, and conduct yourself withintegrity and a sense of fairness.
2. Conduct yourself autonomously.
3. Respond flexibly to environmental changes.
4. Demonstrate expertise and act with a sense ofcreativity.
5. Have a good teamwork spirit and cooperate withyour colleagues.

● Training system
The Company focuses on developing human resourcesthat can precisely respond to internal and external needs.
The Company therefore strives to upgrade employees’
business skills and the organization’s strength throughtraining by service year of employment. At the same time,
the Company offers several training programs to raise
employees’ expertise such as management capabilities,
readiness for globalization and operational capability toenable employees to acquire professional skills in
response to the content of their business duties.

Extending the Content of the Logistics Training
At the logistics training, the lecturers are dispatchedmainly from among active employees so that employees
assigned to posts at logistics sites can improve theirnecessary expertise and skills.
In fiscal 2020, we decided to conduct online training inview of the COVID-19 pandemic. We held a new training
course on logistics and information-related systems
under the theme of “Logistics Tech in the Era of AI, IoT,
and DX,” in which many employees participated.
Furthermore, the lectures were recorded on video todevelop an environment where they can be viewed as ane-learning course in order to secure opportunities for
employees who are unable to attend the training toattend these lectures.

VOICE
Safety and security initiatives
Kazuhiko Narusawa
Deputy General Manager, Planning & Business
Coordination Div., Ryoso Transportation Co., Ltd.
Here at Ryoso Transportation Co., Ltd., as part of our corporatesocial responsibility, we not only work to secure safety andsecurity through transport accident prevention, but are also
actively involved in compliance with laws and regulations of all
kinds, as a trucking business operator certified as an excellent
safety enterprise (G mark enterprise) by the Ministry of Land,
Infrastructure, Transport and Tourism.
In February 2020, we submitted a declaration of voluntaryaction in support of the purpose of the White Logistics promotion
campaign advocated by the Ministry of Land, Infrastructure,
Transport and Tourism, among others. Furthermore, in April 2021,
all our operating bases were awarded one star in the trucking
business field under the “comfortable workplace certification
system” (former White Management) advocated by the Ministry ofLand, Infrastructure, Transport and Tourism. Furthermore, we
strive to reduce the environmental burden, and aim for logistics
that are friendly to the global environment.
While undertaking such initiatives, in response to the increasing
diversification and sophistication of customers’ needs, we are
implementing duty- and position-based education, and holding
safety meetings and safety patrols. Through these measures we
aim to raise awareness among employees, and promote themaintenance and improvement of mental and physical health. We
will continue to strive for safe transportation and the further
improvement of transportation quality with the motto, “Moreswiftly, reliably, and safely.” (Group company of the Company)

Holding lectures on “Outline of office operation”
and “Outline of warehousing facilities
management” as part of the logistics training
Two lectures were held as part of logistics training:“Outline of office operation” and “Outline of warehousing
facilities management.”
In “Outline of office operation,” an office manager gavea specific explanation of income and expenditure
management, labor management, and spatialorganization at offices of the warehousing business,based on actual business practices.
In “Outline of warehousing facilities management.” anemployee from the technical division explained theimportant points of a daily check that can be performed
onsite at warehousing facilities, as well as the importanceof fire prevention management.
Both lectures are directly applicable to our daily
business activities, and more lectures on practical topics
are planned.

VOICE
Taking the logistics training(“AI Literacy Seminar” Part 1:
Knowing the Basics of AI(Artificial Intelligence))
Mari Sugizaki
Air Freight Team, International Transportation Business Div.
In this training, with the aim of advancing business
transformation (improvement activities), we first learned thebasic knowledge of digital technologies, including AI (artificial
intelligence), robots, RPA, IoT, 5G, and 3-D printers, which are
the means to achieve that aim. These digital technologies are
already being used by companies, and although there arevarious theories in play, some research shows that 49% ofJapan’s working population could be replaced by AI and robots
by around 2030.
Although one aspect of this is that workers will be deprived of
their jobs, advances in digital technology have created a society
whereby workers can engage in various workstyles according totheir lifestyles, including working from home. Since this training
was also held online (recorded for distribution at a later date), I
felt that it was very easy to take because I could do so without
any restrictions on time or place as long as I allocated enoughtime for the training itself.
So as not to be left behind by society and competitors, I must
accept the possibility that the work one is responsible for may
not be undertaken by human beings in the future, and would
like to use the time that becomes available due to reduced
travel time and time spent on routine work as a result of digitaltechnology on acquiring the knowledge and abilities necessary
for work that is difficult to replace with AI.

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Initiatives for ESG Management and the SDGs—Appropriate Working Environment

Human resources (training) systems
General employee and regional general employee development course:
Basic role G eneral employees: Engage in a wide variety of corporate operations as core employees who facilitate businessgrowth and management in a variety of regions including overseas.
Regional general employees: Engage in a wide range of corporate operations and facilitate business growth andmanagement mainly in certain areas.
Problem-solving

Human skills

Careerdevelopment

Corporateethics andcompliance

ESG andthe SDGs

Management

Logistics

GlobalManagement
strategy

Senior Manager class

Training for newly appointed managerial employees(Understanding management skills, corporate ethics, etc.)

Assistant Manager classManagement training by theme(Leadership (compulsory), labor management (compulsory),
accounting (compulsory), problem resolution, coaching))

Midlevel employees

health, etc. (taking certain lectures in the Logistics training course))

New employees’ first-half training / New employees’ second-half training(Business manners, acquisition of basic knowledge on general
corporate operations, visits to logistics facilities of the Company, etc.)

Young employee overseas
dispatch program

Training in the 2nd year (Logical thinking, global mindset, safety andYoung employees

Logistics training *1

Leader training(Problem-solving, followership, career design, etc.)

Overseas operations training *2

Practical training for business model formulation(Improve perspectives via action learning, acquire basic management skills)

Mitsubishi Marketing
Association

Targetedproblem-solving
practical training

Correspondence education

Training for
Deputy General
Managers

Life plan
seminarManagerial employee
class

Regional general employees

CrossHealthSelfindustrial
promotion development
exchange

Health promotion seminar

Generalemployees

Career stages

Regional employee development course
Basic role A ssume dedicated responsibility for the operations in each department in a certain region, become familiar with andunderstand its characteristics, and play a role in supporting the growth of the business.

Senior leader class

Career development

Corporate ethics andcompliance

ESG and the SDGs

Logistics

Life plan seminar

Regional supervisor training

Midlevel employees
Training for young regional employees(Problem-solving, career design, etc.)

Overseas operations training *2

Training for midlevel regional employees(Discover one’s own strengths and weaknesses, improve communication capabilities)

Logistics training *1(Confirm expected roles, leadership)

Leader class

Healthpromotion

Selfdevelopment

Training in the 2nd year

Young employees(CSR, safety and health, etc. (taking certain lectures in the Logistics training course))

New employees’ first-half training / New employees’ second-half training(Business manners, acquisition of basic knowledge on general corporate operations,visits to logistics facilities of the Company, etc.)*1: Major lectures for the Logistics training● Registered customs specialist qualification course● FKS (Fuji Logistics Kaizen System)● Safety and health course● Warehousing Business Act and contracting practices● Laws and regulations related to trucking business and practices course● Outline of warehousing storage operation● Marketing for the service industry● Business activities of warehousing business● Outline of harbor transportation business● Company information system overview and information system trends in the logistic industry● Case studies, etc.
*2: Major lectures for the Overseas Operations Training● Explanation of B/L and NVO business● Import shipping agent business● Export shipping agent business● Overseas logistics proposals, etc.

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Mitsubishi Logistics Integrated Report 2021

Correspondence education

Human skills

Health promotion seminar

Career stages

Solar power generation system installation
at the Tosu Distribution Center, Fukuoka Branch

Environmental
Conservation
Environmental issues are not only local issues of the region where our business bases are located but are also globallyinterconnected. Environmental accountability is a global-level social responsibility that affects the future of humanity. The
Mitsubishi Logistics Group recognizes and undertakes initiatives for such environmental issues as the reduction of CO2 emissions
as a countermeasure for climate change, the use of renewable natural resources and contribution to recovery of the eco-system.

Reduction of CO2 emissions asa measure for reducing climate change

Through achievements such as obtaining theGreen Management Certification, we arepromoting environment-friendly business activities

Certified under the Logistics Efficiency
Improvement Act*1, we are integrating logistics
bases and reducing the environmental burden

The Group obtained the Green Management Certification *3,
which pursues profitability and environmental conservation bypromoting environment-friendly business activities from thecertification registration organization Foundation for
Promoting Personal Mobility and Ecological Transportation(abbreviated as “Eco-Mo Foundation”). Some of our businessbases that welcomed their 10th year renewal in March 2017
were commended for their many years of certification. Under
the Certification, in addition to engaging in initiatives toreduce energy consumption such as electricity saving in our
everyday business and initiatives to reduce waste, we arealso engaged in initiatives to reduce the amount of logistics
materials used in packing, etc. and to reuse these materials.
In addition to this certification, in the logistics business,
Fuji Logistics Co., Ltd. (our logistics subsidiary responsible
for the main part of the Warehousing Business Division)
has obtained and maintained
ISO14001 certification inenvironmental management at
each of its bases around Japan,
and is working to reduce its burden
on the environment. In the realestate business, Dia Buil-Tech Co.,
Ltd. obtained ISO14001
certification in June 2018, and isalso working to reduce its burden
Green Managementon the environment in real estate
Certification Commendation
for many years of certification
management, etc.

Obtaining the same certification under the following elevenbusiness plans, we made transportation and distribution
systems more efficient by integrating logistics bases forcustomers who used to employ multiple logistics bases,
thereby reducing the number of delivery trucks. Bycollecting customers’ freight and implementing joint delivery,
we reduce emissions of greenhouse gases (CO2), which
contributes to a reduction in our environmental burden.
1. N orth Building, Sakurajima Distribution Center No. 2,(Started operation in November 2005)
Osaka Branch
2. Sakurajima Distribution Center No. 3, Osaka Branch(Started operation in April 2008)

3. Tobishima Distribution Center, Nagoya Branch(Started operation in November 2008)

4. Misato Distribution Center No. 1, Tokyo Branch(Started operation in December 2008)

5. Ibaraki Distribution Center No. 3, Osaka Branch(Started operation in October 2012)

6. Misato Distribution Center No. 2, Tokyo Branch(Started operation in March 2013)

7. The extended space of Tobishima Distribution Center,(Started operation in September 2015)
Nagoya Branch
8. Sapporo Distribution Center, Tokyo Branch(Started operation in January 2018)*2(Asahi Unyu co., ltd.)
9. Seishin Distribution Center, Kobe Branch(Started operation in March 2018)

10. Ibaraki Distribution Center No. 4, Osaka Branch(Started operation in August 2018)

11. Misato Distribution Center No. 2 Phase 2 building, Tokyo(Started operation in October 2020)
Branch*1. The Logistics Efficiency Improvement Act (Act on Advancement of Integrationand Streamlining of Distribution Business, implemented on October 1, 2005)
The purpose of this law is to promote operations conducive to efficient logistics
and reducing the environmental burden by integrating logistics bases andconducting transportation, distribution, storage and logistics processing
comprehensively. Business plans under this law are approved as acomprehensive efficiency plan and supported by the authority.
In addition, the same law has been amended in May 2016 in view of further
integrating and streamlining the logistics industry with the concern of labor
shortage. The law went into effect in October 2016, aiming to support
measures such as modal shift and cooperative delivery that are conducted bycooperation of related parties including logistics companies and shippers.
*2. Distribution center operations using an Asahi Unyu co., ltd. facility; therefore,
the warehouse is certified under the names of both companies.

1. Certification acquisition status of the Company
All offices of the Warehousing Business Division
Harbor Transportation Business Division(Part of the container terminals of the Port of
Yokohama and the Port of Kobe)
2. Certification acquisition status of the Group
Truck transportation business (Ryoso Transportation
Co., Ltd., and Kyushu Ryoso Transportation Co.,
Ltd.) and warehousing business (Chubu Trade
Warehousing Co., Ltd., Kusatsu Soko Co., Ltd., and
the Warehousing Business Division of Monryo
Transport Corporation)*3. The Foundation for Promoting Personal Mobility and Ecological Transportation
is a public utility foundation that has been certifying and registering business
operators making efforts to reduce the environmental burden at a levelexceeding the standards outlined in the Green Management Promotion Manual
since October 2003.

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Initiatives for ESG Management and the SDGs—Environmental Conservation

Ensuring compliance with the Act on
Rationalizing Energy Use, etc.
As a “Designated Business Operator” under the Act on
Rationalizing Energy Use, the Company is obliged to reduce
per-basic unit energy use more than 1% on an annual
average on a medium- to long-term basis at facilities we
own and rent. Moreover, every year, we submit a regular
report on energy conservation and a medium- to long-term
energy-conservation plan to the Ministry of Economy, Tradeand Industry. The values we reported to the Ministry in fiscal
2020 (the actual results for fiscal 2019) show that ourenergy-conservation measures resulted in a roughly 5%
reduction of per-basic unit energy use compared with thebase year fiscal 2015. We are also striving to reduce CO2
emissions at our real estate facilities subject to the Tokyo
Metropolitan Environmental Security Ordinance.
The actual results of our environmental conservation efforts can beviewed on Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Conducting compliance with the Act on Rational
Use and Appropriate Management of Fluorocarbons
According to the Act on Rational Use and Appropriate
Management of Fluorocarbons*4, companies are required
to inspect commercial refrigerators and air conditioners,
etc. that use fluorocarbons (Class 1 specified products)
and report the leakage amount of fluorocarbons from theaforementioned products when it exceeds a specified level.
The Company is appropriately responding to the law by
preparing the systems and operational guidelines related
to inspection and leakage control. In addition, in fiscal
2020, the Company’s calculated leakage amount offluorocarbons was 719.1 [t-CO2], which was below thelevel of 1,000 [t-CO2] that requires reporting to the Ministerof Land, Infrastructure, Transport and Tourism (the minister
having jurisdiction over the warehouse industry).
*4. Overview of the Act on Rational Use and Appropriate Management of
Fluorocarbons (implemented on April 1, 2015)
The act requires users (owners, in general) of “Class 1 specified products”(commercial air-conditioners, refrigerators and freezers, etc.) to implement“simple inspection of all specified products” and “periodic inspection by aperson with specialized knowledge.” Furthermore, it also requires users toreport the calculated leakage amount of fluorocarbons if the amount exceeds
the specified level of 1,000 [t-CO2] per year.

Actual data of the calculated leakage amount of fluorocarbons may
be viewed on Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Aiming to obtain Rank A certification or
above with CASBEE
At the Company, we place great importance on care forthe global environment, and are working to achieve a
CASBEE (Comprehensive Assessment System for Built
Environment Efficiency) certification in order to objectively
evaluate the environmental performance of our buildings.
CASBEE is a method for evaluating the environmental
performance of buildings with a system thatcomprehensively evaluates the quality of buildings inaddition to facility installations that consider natureenvironment, such as energy conservation and the use of
equipment with a low environmental burden. This40

Mitsubishi Logistics Integrated Report 2021

includes the degree of comfort for building users, as wellas the consideration given to the building’s appearance,and measures to reduce impact on the building’s
surroundings, such as the effect of light pollution.
The results of CASBEE evaluation are given one of fiveranks from S (superior), through A (very good), B+ (good),
B (slightly poor) and C (poor). Under the Environmental
Voluntary Plan, the Group’s specific policy pertaining toenvironmental policy (formulated in 2009; scheduled to bereviewed while proceeding with initiatives for ESG
management and the SDGs), all new facilities to beconstructed by the Company aim to acquire a rank of A orabove through the introduction of energy-saving equipment
and initiatives including global warming countermeasures.
We aim to obtain Rank A certification or above with
CASBEE for facilities to be constructed going forward.
Through this evaluation, we will continue to promotemeasures to reduce environmental burden.
Actual data on our facilities that have obtained Rank A
certification or above with CASBEE can be viewed on
Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Promoting renewal of the existing lighting system to
LED lighting to achieve significant energy conservation
To save energy and reduce CO2 emissions with regard to thelighting systems inside the Company’s warehouses, we arepromoting updating the existing lighting systems with highefficiency lighting equipment when it is time for replacements.
In fiscal 2020, a total of approximately 4,600 existing
lighting units were updated with LED lighting at facilities,
including Daikoku Warehouse C, Yokohama, Honjoh
Warehouse, Nagoya, and Shinko No. 2 Warehouse, Kobe.
The Company expects a reduction of approximately
2,530 thousand kWh in electric energy, whichcorresponds to approximately 5.1% of the annual electricenergy consumption at the Company’s warehousing
facilities in fiscal 2013, by updating existing lighting to
LED lighting (approximately 17,500 units in total).

We are promoting solar power generation
In line with the governmental policy of enhancing the useof renewable energy to cope with global warming andother issues, the Company is promoting the adoption oflarge-scale solar power generation equipment at its
warehousing facilities.
In fiscal 2020, although there was no new installationof solar power generation facilities, the Company willcontinue to introduce these facilities in consideration for
the facility structure and climatic conditions.
The Company’s cumulative total solar power generation
capacity as of the end of fiscal 2019 is 4,394 kW.

Ryoso Transportation Co., Ltd. obtained GreenManagement Certification in its trucking
business, striving for environmental conservation● Addressing environmental issues

For trucking business operators, addressing
environmental issues is one of the highest priorities.

Ryoso Transportation Co., Ltd. (“Ryoso Transportation”)
has obtained the Green Management Certification at all
five of its branches (six operational bases) starting in 2005,
striving to reduce environmental burden.
Specifically, in their efforts to promote eco-driving to
improve gas mileage and reduce emissions of air
pollutants, they have set their own high standards forvehicle inspections and maintenance. They also adopt
low-pollution vehicles that meet the appropriate latest
restrictions for gas emissions.
In fiscal 2020, Ryoso Transportation improved gas
mileage by 30.6% compared with fiscal 2006. It is thoughtthat this stemmed from the reduced handling of importand export freight, eased congestion at container
terminals, and shorter waiting times, as well as the impact
of COVID-19 in fiscal 2020. The information obtained will
be used in future efforts to reduce CO2 emissions.

Furthermore, Shanghai Linghua Logistics thoroughly
separates business-related waste discharged from its
warehousing facilities in response to the tighter regulations.
Going forward, we expect environment-related
regulations will continue to be tightened in each region
throughout China, and will take the appropriate measures.
In addition, we will work on
environmental conservation
by taking measures otherthan regulatory compliance,such as introducing
outdoor lights with solar
power generation systems.
Newly introduced electric forklifts

Fuel economy performance data from all branches of
Ryoso Transportation can be viewed on Mitsubishi
Logistics’ Web site in the “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Proposing environment-friendly transportation anddistribution materials in air freight transportation
Unitrans Ltd. (a subsidiary responsible
for the air freight transportation
business) signed a business
partnership agreement in March 2018with va-Q-tec, a German manufacturerof refrigerated boxes. Using refrigerated
box technology, which is achieved by a
combination of va-Q-tec’s vacuum
insulating materials and phase change
Refrigerated box
materials*5, Unitrans made a proposal
proposed for use in
to a major Japanese chemical
refrigerated transportation
manufacturer in fiscal 2018 for analternative method to dry ice for refrigerated transportation.
The proposal was adopted, and the technology contributed
greatly to reductions in CO2 and the waste volume of
packaging materials at the time of transportation. It was also
highly evaluated by the global semiconductor manufacturers
which are customers of the chemical manufacturers.
Since then, we have made proposals for this method tocustomers in other industries, leading to its adoption for thetransportation and distribution of pharmaceuticals for which
temperature control is required.
Going forward, we will continue to propose environmentfriendly transportation and distribution materials to customers,by such means as incorporation of new technology.
*5. Phase change material (PCM): A type of cold storage material (cold insulator).
Unlike dry ice, it uses a material that can be re-frozen. It has a higher
refrigeration effect than ordinary cold insulators (gel ice) and can be used inlong-time transportation.

Introducing vehicles that comply with local
regulations at Shanghai Linghua Logistics
Shanghai Linghua Logistics Co., Ltd., which is engaged in thewarehousing and transportation business mainly in Shanghai,
China, has introduced trucks that comply with regulations inline with the tightened local exhaust gas regulations, and isconsecutively disposing of and replacing diesel forklifts.

Waste separation in Shanghai

Outdoor lights with solar power
generation systems

Promoting environmental conservation withregard to information system equipment
On adopting information system equipment including servers
and PCs, we select models that consume less energy.

We are promoting environmental
conservation not only at our operationalsites but also at our offices● Promotion of summertime and wintertime energy saving

We strove to save energy by participating as a Group in
the Cool Biz campaign during the summertime (Maythrough October 2020), which calls for offices to set their
air-conditioning thermostats at around 28°C, as well as in
the Warm Biz campaign during the wintertime (November
2020 through March 2021), which calls for offices to set
their air-conditioning thermostats at around 20°C.
In January 2020, we revised the dress code as part ofour workstyle reforms, which we believe contributes toenergy savings throughout the entire year, not just insummer and winter.
In addition, as a year-round initiative, we strive to saveenergy including by reducing the number of lights in use
within a scope that is not detrimental to operation andswitching off OA equipment when not in use.
●P
 romotion of Green Purchasing of stationery and otheroffice supplies
When the Group companies purchase office supplies, we
not only consider quality and price but also choose
products and services with less environmental impact—
Green Purchasing.
As one example, Ryoso Transportation is proactively
purchasing retread tires*6.
*6. A retread tire has new rubber pasted on a used base tire, thereby restoring thetire’s original functionality.

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41

Initiatives for ESG Management and the SDGs—Environmental Conservation

Use of renewable resources
A Disaster-Resistant and Eco-Friendly Warehousecompleted construction and started operation
We completed construction and started operation of theMisato Distribution Center No. 2 Phase 2 building in Saitama(4 floors above ground, floor area: 28,000 m2), a DisasterResistant and Eco-Friendly Warehouse, in October 2020. The
center is a pharmaceuticals warehouse featuring specifications
and equipment, including a cold-storage handling areaconnected directly to the auto shelter, in order to provide
high-quality services that comply with the Guidelines on Good
Distribution of Pharmaceuticals (GDP) issued by the Ministry of
Health, Labour and Welfare in December 2018.
(1) Main Disaster Prevention Functions
a. Seismic performance
We have created a seismic-isolated structure with the
installation of seismic isolation equipment (61 units oflaminated rubber bearings and 24 oil dampers) in thebasement of the warehouse, to improve seismic performance.
b. Power outage countermeasures
Emergency power generation equipment (625 kVA
and 400kVA, operates for 48 hours after outage) has
been installed to prepare for a power outage.
c. Wind pressure resistance on the roof
Wind pressure resistance on the roof has been increased to thesufficient level, which is 15% higher than the regulation underthe Building Standards Act, to strengthen countermeasures fordisasters such as typhoons.
(2) Main Environmental Performance andEnvironmentally-Friendly Equipment
a. LED lighting
In addition to installing LED lighting throughout theentire building, we use motion detectors for common
area lighting to save energy.

VOICE
Disaster-Resistant and Eco-Friendly
Warehouses for pharmaceuticals
Kyogo Yahagi
Real Estate Dept., Tokyo Branch
The Misato Distribution Center No. 2 Phase 2 building, for which I
handled the overall facility construction, was constructed based on
the concept of a Disaster-Resistant and Eco-Friendly Warehouse.
In recent years, localized torrential rains due to large typhoons
and isolated downpours have occurred in various areas, resulting inmany cases of flood damage. During the construction of the Misato
Distribution Center No. 2 Phase 2 building, we carried out flood
simulation at the Edogawa River Office to assess the height ofwater inundation, and used waterproof shutters, waterproof doors,
and waterstops, etc. in order to protect the cold storage, elevators,
and electric shafts*7 on the 1st floor, and made concrete spandrel
walls*8 for the cold storage walls to increase their flood resistance.
In addition, we strengthened the exterior walls and roof as awindproof measure, thereby making the center “disaster-resistant.”b.	Air conditioning load
reduction
We are giving
consideration to energy
conservation by adopting
LED lighting
high-efficiency air
conditioners for air conditioning equipment, and totalheat exchangers for office ventilation equipment.
c. Low-E glass
We have adopted thermal-insulating, high heatinsulating multi-layered glass (Low-E glass) that
increases the reflectance of far infrared rays andachieves a high heat-insulation performance.
d. CASBEE
We have achieved Rank A certification with CASBEE
Saitama Prefecture (Comprehensive Assessment
System for Built Environment Efficiency) as the resultof initiatives such as introducing an energy
conservation system.

Contribution to the recovery of theeco-system
Conducting reforestation through volunteer
activities and donations as a partner ofreforestation of Kanagawa Prefecture
To address the global environment from the perspectiveof preservation of biodiversity, we participated in apartnership program of reforestation of Kanagawa
Prefecture and initiated related activities in April 2011.
Every year, we have held reforestation activities,
including tree thinning activities, in the prefectural forest
by Tanzawa Lake. However, this activity was canceled infiscal 2020 to prevent the spread of COVID-19.
In place of this activity, in October 2020, administrative
staff, after taking sufficient infection prevention measures,inspected the “Mitsubishi Logistics Forest,” a water
conservation forest located on the shores of Lake
Miyagase in Kanagawa Prefecture, which was named
after the Company under the same partnership program.
On the day of the event, we saw healthy frogs and deer
droppings, which confirmed our coexistence with nature.
Unfortunately, executives and employees were not able tocarry out the usual activities
that they have in past years.
However, going forward, we
will continue our activities
while making adjustments inaccordance with the situation,
and work to raise awarenessof the natural environment
Lake Miyagase
and environmental issues.

*7. Electric shaft: A space through which electrical wiring and electricalconduits are passed.
*8. Spandrel wall: A wall about the height of the floor to waist level. The
spandrel wall is covered with another material to form the wall of thecold storage warehouse.
Inspection

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“Mitsubishi Logistics Forest”

Fulfillment of Sincere andFair Business Activities
1st floor general warehouse dock Shelter,
Misato Distribution Center No. 2 Phase 2,Tokyo Branch

We earn trust from society by fulfilling our responsibilities regarding ethical activities. By conducting fair and open competition in
our activities, we can showcase our compliance to society. To fulfill our sincere and fair business activities, we recognize the issues
of appropriate management of information and compliance with laws and regulations such as the Act against Delay in Payment of
Subcontract Proceeds, etc. and the insider trading prevention law and strive to establish a foundation of trust from society.

Prohibition of unfair advantage in competitionand promotion of fair and open competition
We conduct training concerning compliance with
the Act against Delay in Payment of Subcontract
Proceeds, etc. and the prevention of insider trading
In March 2021, we conducted training concerning the Act
against Delay in Payment of Subcontract Proceeds, etc.,
which included the Company and its domestic Group
companies. A total of 2,061 employees who are in charge of
implementing the aforementioned act and related associatesfrom each division attended the training and learned the
purpose of the law, the scope of applications, responsibilities
and prohibited matters through questioning online. In October
2020 and February 2021, we conducted training related to theprevention of insider trading for a total of 88 new employees
and newly appointed managerial employees of the Company
and verified their understanding through questioning online.
Actual performance data of the training concerning thoroughcompliance with the Act against Delay in Payment of Subcontract
Proceeds, etc. and prevention of insider trading can be viewed
on Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

We focus on information security to provide
high-quality and secure services for customers
To provide the best services for our customers, theCompany formulated various rules related to information
systems. We have disseminated our information security
policy to all executives and employees.
To ensure the smooth business activities of the Company,
we formulated specific compliance matters as to the use
and management of our in-house network. Also, we
appoint a LAN manager from each branch’s information
system section and OA promotion staff from the relevant
section of each division that uses the network, ensuringsafety and the effective use of our in-house network.
In fiscal 2020, we conducted a web-based questionnairewith regard to information security in October 2020 which wasanswered by a total of 3,526 persons, including 1,880 persons
from the Company and 1,646 persons from Group companies,
thereby increasing awareness of information security.
As a measure against the kind of cyber-attacks
represented by targeted e-mail virus attacks, in addition toestablishing strong security defense measures throughmultilayer defense, we are endeavoring to strengthen our

security by introducing software that detects suspicious
behavior on individual computers in order to minimize faults
and recover rapidly even in the event of unauthorized access.
Furthermore, we are increasing information security, suchas by conducting regular training and education on cyberattacks for executives and all employees.
Actual performance data on execution of questionnairewith regard to information security can be viewed on
Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Management of Information Security

1. Security of customer information (personal information)
2. Security of intellectual property rights
3. Confidentiality obligation
4.	Compliance with laws and regulations, obligation ofcompliance with regulations and penalties
5. Management of information assets
6. Formulation of security measure standards (Development
standard, management standard, outsourcing standard)
7. Monitoring and supervision
8. Protecting systems from computer viruses
9. Access authority control
10. Information security education

Management of Network Security

1.	Management of connection to ML-net (In-housenetwork)
2. Rules for e-mail use
3. Rules for dispatching information
4.	Rules for connection with networks outside theCompany
Also, part of the operations of the Tokyo Branch trunk room
office, Dia Systems Corporation (our subsidiary to develop andmanage our information system) and Fuji Logistics Co., Ltd. allacquired ISO27001 certification, an international information
security management system standard, and periodicallyreceive third-party evaluation by a certifying organization,
thereby working to improve our information security.

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43

Initiatives for ESG Management and the SDGs
Freight elevator and vertical transport vehicles
Misato Distribution Center No. 2 Phase 2, Tokyo Branch

Provision of Safe, High-Quality
and Useful Services
To fulfill our mission as a logistics and real estate business operator relied on by society, we intend to promote measures
to focus on disasters to continue to provide socially and environmentally beneficial and high-quality services andpromotion of measures to maintain service functions during disasters.

Provision of socially and environmentally
beneficial high-quality services
We will continue to promote the improvement ofquality, aiming to be a company that plays a role inenhancing the quality of our customers’ products
The Mitsubishi Logistics Group continues to promote its various
efforts tenaciously to improve the quality of services to get
acknowledged by customers as a constantly reliable partner.
● We aim for high quality from the customers’ perspective.
To become a corporation that is continuously chosen bycustomers, we conduct business activities based on
ideas and actions from the customers’ perspective. To
achieve customer satisfaction, we have broadened theframework of quality enhancement to include the qualityof operations, business duties and the corporation itself.
Moreover, to ensure trust from customers, we will build
on our efforts at ensuring good quality to become acorporation that can boast “quality” as its strength.
● Dissemination of “Our Declaration of Quality”
We put up an “Our Declaration of Quality” notice at each
worksite, distributed the “Our Declaration of Quality” cards toall employees of the Mitsubishi Logistics Group and gave an
explanation about it during stratified trainings, etc., to further
disseminate the information.
● We connect employee satisfaction to customer satisfaction.
To offer high-quality services to customers, we regard
Employee Satisfaction (ES) as an indispensable element. We
strive to enhance the motivation of each employee.
We believe that creating a good work environment where
employees can engage in business activities with confidence
and contact customers with a smile will eventually lead to
Customer Satisfaction (CS).

The Warehousing Business Division establishedorganizations that specialize in quality management
Going forward, since it is necessary to continue to maintain andimprove the quality of logistics in order to further expand
logistics services and grow the business in Japan and overseas,in April 2021 we established a Warehousing Business Division
Quality Control Team as a formal department in order tostrengthen the structure of the quality management groups thathave assigned staff responsible for quality management to the
Warehousing and Distribution Business Division.
In pharmaceuticals operations, since the level of quality
required by customers is increasing, we will further deepen

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our current efforts and establish a system that can create
and provide logistics services of an even higher quality.
For non-pharmaceutical operations, we will utilize theknow-how gained in pharmaceutical operations to support
quality improvement activities, and plan to use operational
analysis tools within warehouses to gather and visualize dataand support productivity improvement activities at offices
and our operating companies, etc.
In addition, regarding safety-related matters, we plan to carryout a joint response in collaboration with the newly established
Human Resources Division’s Safety Promotion Department( see page 35), and work also on improving quality overseas.
Going forward, we will continue to collaborate with eachdivision and department with the aim of improving service
quality. ”

VOICE
Establishing the new Quality
Control Team
Kazuaki Nakamoto
Quality Control Team, Warehousing & Distribution Business Div.
The Warehousing Business Division’s Quality Control Team wasestablished in April 2021 with the aim of improving the quality of ourwarehousing operations. Our team consists of two groups, one
dealing with pharmaceuticals and the other with general products.
Recently, due to the continued scandals among
pharmaceuticals companies, licensed contractors are now legallyobliged to establish a legal compliance system under the Act on
Securing Quality, Efficacy and Safety of Products Including
Pharmaceuticals and Medical Devices. In response to this, thePharmaceuticals Group is working on the necessary revisions tovarious documents in collaboration with the quality control groupsat each branch in order to maintain a secure and safe supply chain
in response to the Act for Partial Revision of the Act on Securing
Quality, Efficacy and Safety of Products Including Pharmaceuticals
and Medical Devices and Guidelines on Legal Compliance by
Manufacturing Distributors and Manufacturers. In addition, theGeneral Products Group, which handles products other thanpharmaceuticals, is working in conjunction with other departments
and divisions on revisions to the rule book for the development of
ISO27001 (information security) for distribution to all branches,organizational design, and improvements to operations efficiency
at warehouse sites through the utilization of IoT equipment.
I would like to continue studying every day so that I can support
the activities of each branch and office while obtaining the opinionsof the many people working at each branch, office and Group
company.

Obtained the quality management standard(AS9120) certification in the field of
aerospace defense
The Nagoya Branch is engaged in a large number ofaerospace industry-related storage and transportation
operations under contract, and aims to further improve thequality of logistics. In April 2018, we obtained certificationfrom DNV BUSINESS ASSURANCE USA, INC. in the U.S.
for the AS9100 series of quality management standards,
which have been acquired by aerospace defense-relatedcompanies around the world including Boeing and Airbus.
The AS9120 certification is one of AS9100 series ofquality management system standards for logistics
companies and trading companies established by theInternational Aerospace Quality Group (IAQG), which iscomposed of aerospace-related companies.
Based on this standard, we provide the advanced
logistics services required for the aerospace-related
business. Going forward, we will continue to improve
quality in order to meet the needs of our customers.

Obtained CEIV Pharma certification, a
quality certification system forpharmaceutical air transportation
In response to a call from Kansai Airports, the Company
participated in KIX Pharma Community*1, which wasformed for the first time in Japan mainly by airports, andacquired the CEIV Pharma certification under the quality
certification system for pharmaceutical air transportation,
along with the other five participating companies.
CEIV Pharma certification is a quality certification
system for pharmaceutical air transportation promoted by
IATA (International Air Transport Association). The uniqueaspect of CEIV Pharma certification is that organizations
are certified in accordance with the same quality
inspection standards worldwide. Currently, we are also
participating in efforts to obtain this certification at Narita
Airport and, going forward, will continue to provide highquality pharmaceutical transportation.
*1. Formed through the collaboration of Kansai Airports and international airtransportation carriers that use Kansai International Airport (KIX) in order foreach carrier to obtain CEIV Pharma certification with a view to ensuring the highquality of pharmaceuticals freight handling at KIX.

Each operating site and affiliated company
conduct specific quality improvement measures
To offer high-quality services, the Mitsubishi Logistics
Group conducts daily efforts to improve the quality ateach operating site and affiliated company. The content
and results of such efforts are horizontally developed
across the Group. Some of these measures are as follows.

■ Measures taken by Chubu Trade Warehousing Co., Ltd.

■ Measures taken at divisions or branches and Group companies
Divisions or
Branches andGroup companies

Content of measures

Warehousing andDistribution
Business Division

Held meetings attended by managers from all of
the operating bases to share information on
improvement of quality.

Tokyo Branch

Engaged in self-check activities based on
regulations contained in quality control procedure
manuals for pharmaceutical distribution centers

Yokohama Branch

The 5S Activities Promotion Committee patrolled
the warehousing facilities and made evaluations
for each checklist item.

Monryo Transport
Corporation

Establish a Safety Quality Promotion Chamber toprevent industrial accidents

Sairyo Service Co.,
Ltd.

Compilation of a forklift operating manual,
instruction using the manual, and information
sharing of near-miss cases, etc.

Fuji Logistics Co.,Ltd.

Improving quality through obtaining andmaintaining ISO9001 certification, forklift
competitions, improvement team activities,
internal company training, and 5S activities, etc.

Kyokuryo
Implemented measures to prevent heatstroke in
Warehouse Co., Ltd. summer and influenza in winterShinryo Koun Co.,Ltd.

Provided technical training to improve workers’
technical capability.

Mitsubishi Logistics
China Co., Ltd.

Improved and implemented the human resources
development system at all the Group companies
in China.

Shanghai Linghua
Logistics Co., Ltd.

Collected accident-related information at eachdivision and department, analyzed the tendencies
and gave feedback to all managerial employees.

Yokohama Dia
Building
Management
Corporation

Collected information on complaints from
customers through information counters andshared the information at meetings with thetenants.

Dia Buil-Tech Co.,Ltd.

Improving service quality and strengthening
measures for environmental issues by obtaining
ISO9001 certification

Keihin Naigai
Forwarding Co., Ltd.

Held internal company lectures on bonding andcustoms clearance

Kobe Dia
Maintenance Co.,Ltd.

Set annual goals for quality improvement for eachdepartment, managed the progress, andcommended an internal award for excellent cases
once a year

Chubu Trade
Warehousing Co.,Ltd.

Held regular lectures by external lecturers topromote safety measures and risk prediction
activities during cargo handling operations

Mitsubishi Logistics Integrated Report 2021

45

Initiatives for ESG Management and the SDGs—Provision of Safe, High-Quality and Useful Services■ Measures taken by Fuji Logistics Co., Ltd.

Online forklift lectures

Announcement and awards ceremony for improvement team activities

We commend improvement activities thatwill lead to service quality improvement andstreamlining of business processes
The Company introduced a commendation system for
improvement activities with an aim to vitalize the voluntary
improvement activities in July 2016. Under this system, eachgroup sets its own theme, performs improvement activities
based thereon, and the award is given once a year to thegroup that particularly contributed to the service quality
improvement and streamlining of business processes.
In addition, as the system is open not only to Group
companies but also to anyone who engages in the
Company’s business including suppliers, it is designed toenable each worksite and team to come together andjoin the improvement activities.
In fiscal 2020, the fifth year of the commendation
system, 63 groups (387 people) joined the activities,

VOICE
Improvement activities
Masayuki Baba
Human Resources Dept., Human Resources Div.
I am involved in the commendation system for improvement
activities in an administrative capacity. Approximately five years
have passed since the system was introduced and the numberof participating groups is increasing every year. As part of theadministrative team, I am very pleased that more and more
people are actively working on improvement activities.
Some of the projects were changed to a remote format in
fiscal 2020 due to the impact of COVID-19, but normally we visit
nationwide departments and sections once every six months to
get updates about the projects and score them. It is clear thatthe quality of the projects is increasing every year. The membersof the administrative team are also being inspired by theparticipants on these visits to become more involved in
improvement activities at their own sections.
Going forward, I hope that the administrative team willcontinue to disseminate information and that not only theparticipants but other people will also get to know the activitiesof other sections so that further improvement activities will occur.

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making a cumulative total of around 1,800 participants.
Their wide-ranging themes included not only the activities
within warehouses such as review of the operation flowlines and improving storage efficiency, but also business
improvement and streamlining of clerical work in offices.
Excellent proposals also came from Group companies
that were unfortunately unable to receive awards.
The administrative side of this system provided support
as needed to help each group thoroughly analyze
problems, identify the causes and perform efficient
improvement activities.
Although being small, by continuing company-wide
efforts, the activity may produce great results. To havethe improvement activities
ingrained in our corporate
culture, we will operate
the system while sharing
activity examples in theGroup with the use of aninternal database andImprovement activities (Tokyo Branch)in-house journal.

To further improve the quality of logistics
operations, we adopted the G-MIWS (a new
information system related to warehousestorage operation and delivery center operation)
With the aim of providing a high-quality logistics service
integrating nationwide and overseas logistics, theCompany has installed G-MIWS (Global Mitsubishi
Intelligent Warehouse System), a warehousing anddistribution center system, at all domestic locations and atsome overseas bases. The “G” of “G-MIWS” signifies“global,” aiming to expand the Company’s logistics
business to integrate nationwide and overseas logistics.
Our system is available in English and Chinese for overseas
use and is designed to be effective in standardizing
operations, improving service quality and reducing costs.
By exporting various types of logistics-related data, we will
analyze operations, formulate sales strategies, provide
useful information for customers’ decision making in atimely manner and provide even higher-quality logistics
services than ever to fully support customers’ businessdevelopment from the aspect of logistics.

Started introducing a system to improve
operational efficiency at warehouses using AI
As one of the growth strategies of the MLC2030 Vision,
we are promoting “the improvement of operational
processes and further utilization of new technologies.”
Based on this strategy, we developed an AI system thatwill contribute to improved productivity of warehouse
operations, and started introducing it from January 2021.
By incorporating our existing operational expertise at
distribution centers into AI distribution software, we areworking on improving the productivity of warehouse
operations through functions such as personnel
management and real time work progress management
based on forecasts of shipment volumes, optimization of
inventory placement based on an analysis of shipping
performance, improved efficiency of combining work

instructions (picking order), and a reduction in operation
flow lines.
Going forward, we plan to carry out the horizontal
expansion of the system to bases handling medical/healthcare, food/beverage, and machinery/electrical machines,
which are the priority areas in the MLC2030 vision.

Promotion of disaster measures tomaintain service functions
Working on crisis-preventive measures andmeasures to focus on crises promptly andeffectively as they occur
The basic purpose of our crisis management measures isto predict various crises that can seriously affectcorporate management, prevent such crises and, if acrisis does happen, focus on the crisis quickly andeffectively to minimize human and material damage thatwould impact corporate management and restore thenormal operational structure as early as possible. In lightof the fact that disasters are said to have intensified inrecent years, we particularly roll out “Disaster-Resistantand Eco-Friendly Warehouses” and “Disaster-Resistantand Eco-Friendly Office Buildings” and aim to be resilient
against disasters from both soft and hard aspects.

Seismic isolation rubber and seismic
isolation dampers (Misato Distribution
Center No. 2 Phase 2 building, Tokyo)

Emergency power generator(Minamihonmoku Distribution Center in
Yokohama)

To fulfill our corporate social responsibility, we intend to:1.	Ensure the safety of employees, their families andrelated people;
2.	Preserve corporate facilities (e.g., the Company’s
warehouses, buildings and facilities) and the freightreceived; and3. Strive to quickly restore and continue operation.
To respond to trust in our corporation from society, we will:

1.	Strive to avoid adverse effects to stakeholders(customers, shareholders and business partners), and2.	Contribute to the quick stabilization of local
communities.

Reinforcing the emergency and disastermeasures system
As an emergency measure, we implemented large-scaledisaster measure training with mandatory employee
participation. In fiscal 2020, although we scaled back thetraining in view of COVID-19, the training involved the useof a mobile phone safety confirmation system, going to or
leaving a work site by walking and checking theprocedures of restoration from disaster damage, etc.
In addition, communication training on the use oftransceivers was conducted monthly in the Group
companies to acquire the knowledge of its use, in orderto strengthen the disaster measures system.
Moreover, by increasing the number of offices
implementing the Earthquake Early Warning system, we
strive to promptly collect information needed to ensure
employees’ safety.

Transceiver (MCA radio)

Earthquake Early Warning System

Taking measures to prevent fire and respondto the occurrence of fire
Following the fire at a warehouse of a major mail ordercompany in February 2017, the Building Standards Act
was amended in June 2019, requiring the formulation ofa maintenance plan for fire shutters at warehouses of acertain size or larger. The Company, even before thisincident, had been conducting thorough employee
education, enhancing security, and taking fire preventive
measures from the
aspects of structure andfacility when constructing
warehouses. In addition,
we have established aconstant communication
system with local firestations and conductperiodic fire drills every
Fire prevention patrol
year in preparation for theoccurrence of fire.
Through continuing suchmeasures and initiatives,
we will strive to provide
highly reliable services forour customers.

Fire drill

Mitsubishi Logistics Integrated Report 2021

47

Initiatives for ESG Management and the SDGs—Provision of Safe, High-Quality and Useful Services

We are strengthening our information
system crisis management structure tofocus on disasters and other crises
To ensure continuous use of the information system evenduring an emergency, we established a disastercountermeasures center in the Kansai region to back up
data and implemented a duplicate information system forour in-house network and internet environment. In addition,
the Company has formulated amanual focused on information
system disasters and othermeasures as countermeasurestaken during operation of such
systems against information
Disaster countermeasuresystem accidents and failure.
center in the Kansai region

11 Company facilities designated as supportand relief goods logistics bases by the
Ministry of Land, Infrastructure, and Tourism
The Ministry of Land, Infrastructure, Transport and Tourism,
learning from its reflection on the Great East Japan Earthquake,
held an advisory conference from September to December
2011, attended by experts, logistics business operators andpeople related to industry organizations, among others, tocompile the “Basic concept on the support/relief goods logistics
system,” which aims for the efficient and smooth delivery of
support/relief goods to afflicted areas at the time of a disaster.
The General Manager of the Warehousing and Distribution
Business Division of the Company assumed a position as acommittee member representing warehousing business
operators, requested by the Ministry, and actively commented
from the perspective of a warehousing business operator.
These discussions concluded with the shared recognition thatfor the delivery of support/relief goods at the time of a disaster,
it is essential to fully utilize the expertise and facilities of private
logistics operators.
In fiscal 2011, 395 private facilities nationwide, mainly in the
Kanto, Tokai and Tonankai regions, where a large-scale earthquake
is foreseen in the near future, were designated as support/relief
goods logistics bases, including the Company’s seven facilities
located in the Kanto, Tokai and Hanshin regions. In fiscal 2012,
two other facilities of the Company (in Fukuoka and Saga) were
newly designated as relief supplies and material facilities.
In fiscal 2013, two other facilities of the Company (both in
Aichi Prefecture) were newly designated as relief supplies andData on our 11 facilities designated as support/relief
goods logistics base facilities can be viewed on
Mitsubishi Logistics’ Web site in “Extended version.”
HOME ▶ CITIZENSHIP ▶ Integrated Report ▶ Extended version

Tobishima Distribution Center, Nagoya
Branch48

Chuo Futo Warehouse, Fukuoka Branch

Mitsubishi Logistics Integrated Report 2021

material facilities which brought the number of the Company’s
facilities to 11. We will thoroughly prepare to fulfill our public role
as a warehousing business operator so that each of thedesignated facilities of the Company can function well during afuture large-scale disaster.

Certified as an “advanced model company” by
the Shanghai Fire Fighting Association of China
Shanghai Linghua Logistics Co., Ltd., which is a member of
the Shanghai Fire Fighting Association, was evaluated by the
Association for its fire management responsibility system, its
initial response system in the case of a fire, and the status ofits firefighting equipment management, and was certified as
an “advanced model company” in fiscal 2020.
The Shanghai Fire Fighting Association, is a non-profit
organization with around 4,000 corporate members managed
and supervised by the Shanghai Fire Bureau. Of these, onlyaround 40 companies havebeen certified as an “advanced
model company.”
Going forward, we willcontinue to strive to provide
safer and more secureservices without neglecting
daily management.
Certificate of commendation (plaque)

The awards ceremony

We have introduced the Disaster Information
Communication System (D-DICS)
Until now, emergency communication between the leased
building management offices in the Tokyo metropolitan area
and the Company, and emergency communication between
those offices and Dia Buil-Tech Co., Ltd. head office utilized atelephone communication network. However, based on theassumption that telephone lines would become overloaded
during large-scale emergencies, we introduced the Disaster
Information Communication System (D-DICS) jointly with Dia
Buil-Tech, using Internet networks that are not prone tooverloading even during emergencies. In this way, we haveensured secure information transfer and sharing in times ofdisaster. (Started operation in September 2017, covering 23
leased buildings in the Tokyo metropolitan area.)
The D-DICS system enables real-time sharing of informationon the status of damage among relevant parties when enteredinto the system at each building, and can also carry
instructions regarding the damage or other communications.
The introduction of this system brings about thecentralization of information, enabling a swift and accurate
initial response in times of disaster.
We will continue to work to ensure that the tenants of ourbuildings can use them with confidence, through the utilizationof this kind of system.

Flower garden
at Yokohama Bay Quarter

Coordination with Local Communities
and International Society
To contribute to the development of local communities and international society, we must focus not only on the sitewhere our business base is located but also understand our relationship with society and recognize our common interests
with society. To maintain harmonious relationships with local and international societies, we will contribute to culturalactivities and health services and make donations.

Contribution through activities inlocal communities, etc.
We hold a monthly market, “iimono ippai
marche,” at Yokohama Bay Quarter(monthly from December 2020)
Every year at the Yokohama Bay Quarter (the Company’scommercial real estate facilities in Yokohama), we hold anumber of events, including charity fairs, running club
events, and radio-based events during the summer
vacation. However, in 2020, many of the attraction eventswere suspended due to COVID-19.
Under these circumstances, we were contacted by afruit and vegetable wholesaler in Kanagawa-ku,
Yokohama, where Yokohama Bay Quarter is also located,
who informed us that the consumption of commercial
vegetables at hotels and restaurants had becomesluggish due to COVID-19. As a result, we decided tohost an “iimono ippai marche” market where consumers
can purchase special kits of assorted vegetables.
The market is held at the entryway (open space) to
Yokohama Bay Quarter. Customers making an advancebooking on the website are assigned to a “contactlessmarket” in which items can only be redeemed on the dayof the market. The event is held with due consideration
for preventing the spread of COVID-19, and we support
producers by providing the venue free of charge and by
introducing the events on the website and through social
media.
In the future, we would like to bring further excitement
to the region as a shopping mall close to the community,
while giving consideration to safety and security.

The Osaka Branch was registered as a
“Delicious! KANSAI Support Company”
The cafeteria on the 2nd floor of Osaka Dia Building (theCompany’s office building in the Osaka area) was
registered as a “Delicious! KANSAI Support Company”
through a system developed by the Union of Kansai
Governments in support of the movement to promote theuse of specialty agricultural products in the region andexpand consumption.
The cafeteria is used by around 300 people a day. In
addition to offering menus using ingredients from theUnion of Kansai Governments, we are working to also
provide sustainable seafood (marine products caught withconsideration for fishery resources and the environment).
Going forward, we will
strive to contribute to the
local community andsociety, and to improve
the satisfaction of peopleusing the cafeteria bycontinuing these types ofOsaka Dia Building cafeteria
initiatives.

We held Lantern Night at Yokohama Bay Quarter
While it is difficult to hold an event in which many people
gather together at the same time, we held Lantern Night,
an illumination event that customers could enjoy, while
preventing overcrowding at the venue, from January to
March 2021.
Lantern Night, which was inspired by the lantern
festival held in Hội An, the ancient capital of Vietnam, washeld for the first time in summer 2019. It was a popular
event with its colored lanterns often appearing on SNS
accompanied by heartwarming comments such as “at atime when there are so many problems, it made my heartbrighter,” “when it’s hard to go out anywhere, I felt like I
had gone on a trip,” and“I’m so happy to see you
again.”
Going forward, we willcontinue to work on
projects that enable ourcustomers to feel joy intheir daily lives while
adjusting to the social
Lantern Nightlandscape.

Mitsubishi Logistics Integrated Report 2021

49

Initiatives for ESG Management and the SDGs—Coordination with Local Communities and International Society

We are implementing measures to preventthe spread of COVID-19
Office buildings and commercial facilities managed andoperated by the Real Estate Business division are taking
measures such as placing alcohol for hand disinfection
and thermometers (some facilities only) at entrances,changing hand soaps in restrooms to antibacterial soap,
and posting requests for people to wash their hands andwear masks. In addition, we are also implementing
measures such as disinfecting common area door knobs
with antibacterial detergent when cleaning them, andinstalling acrylic sheets to prevent droplet infection in thefacilities’ staff break rooms.
As well, at Yokohama Bay Quarter, we are introducing
illustrations of unique items to represent a distance of 2
meters, such as “about 4 baguettes” and “around 4
cases of wine” to make it easier to visualize appropriatesocial distancing. We are also making efforts to operate
the facility so that visitors can feel at ease, including byproducing paper mask cases featuring original designs
and distributing them to visitors who are using therestaurants and cafes inthe building.
Going forward, we willcontinue our efforts toprovide a safe and secureenvironment for those whowork in the office buildings
and commercial facilities,
Mask caseas well as for visitors.

We conduct social contribution activities as amember of the Mitsubishi Group and participate in
the Mitsubishi Social Contribution Liaison Council
As a social contribution activity within the Mitsubishi Group,
we donate to academic and charitable enterprises andconduct various volunteer activities. Also, as a member ofthe Mitsubishi Social Contribution Liaison Council madeup of the companies within the Mitsubishi Group, we
report on our related activities and exchange information.

We support the activities of The Dia
Foundation for Research on Ageing Societies
The Dia Foundation for Research on Ageing Societies is
engaged in activities aimed at contributing to solving
issues faced by aging societies, in fields such as
insurance, medical care and welfare, throughinvestigation and research into these issues.
Interest is growing in social participation by the elderly,in the context of a declining birthrate and aging population.
The Company is collaborating with The Dia Foundation for
Research on Ageing Societies in the utilization of diverse
human resources, including the elderly. In this way we aim
to realize an affluent and sustainable society.

We are cosponsoring Diamond Cup Golf as acommunity contribution
Participating companies within the Mitsubishi Group
cosponsored a notable golf tournament, Diamond Cup
Golf, which contributes to local communities and helps
nurture junior golfers through charitable activities.
Valuing the underlying concept and purposes of thistournament, the Company cosponsored this event as
one of the participating companies.

Installed flower beds in the greenbelt near
the Nagoya Station

2-meter social distancing
About 4 baguettes

2-meter social distancing
About 4 cases of wine

We donated masks to the government and
the Japanese Red Cross Society
The spread of COVID-19 led to a shortage of masks. As
a result, Dia Buil-Tech Co., Ltd. donated 5,000 masks to
the Japanese Red Cross Society in April and May 2020,
and Yokohama Dia Building Management Corporation(the Yokohama Bay Quarter management company)
donated a total of 6,000 masks to the Kanagawa Fire
Station, the Kanagawa Police Station, the Kanagawa
Ward Medical Association, and the Kanagawa Ward
Health and Medical Center, all of which are located in thesame area as the Yokohama Bay Quarter, in July 2020.

Our Nagoya Branch responded to the request from the
Meieki Development Council, made up of landowners
around Nagoya Station, to install flower beds to liven up
and bring color to the front of the Nagoya Station owned
by Nagoya City.
Since fiscal 2011, we have been contributing to thebeautification of the environment in front of the Nagoya Stationby planting flowers two times a year in spring and autumn.

The flower bed in spring/autumn<Contents on the signboard of theflower bed of hospitality>

The flower bed of hospitality

50

Mitsubishi Logistics Integrated Report 2021

This flower belt is managed by the helpof flower supporters with the aim ofcreating a community with lots offlowery colors.

We conducted counterterrorism drills jointlywith the police station at the Kobe
Harborland bus parking lot
On October 14, 2020 (Wednesday), we held a drill at the Kobe
Harborland bus parking lot in collaboration with the Hyogo
Prefectural Police Department’s Ikuta Station based on a
scenario of an indiscriminate terrorist attack with explosives.
Approximately 60 people from the prefectural police
department and neighboring companies participated on the
day of the event. Based on the scenario that a terrorist had set
up explosives and was injuring passersby with a knife, the drill
was conducted to protect the injured, apprehend the suspect,and have the riot police collect and dispose of the explosives.
Many people visit Kobe Harborland every day. In order toensure the safety of our customers, it is important that we
prepare for various situations on a daily basis andcollaborate with different organizations, such as the policeand fire stations.
We will raise awareness of crime prevention and disasterprevention, and continue in our aim to be a facility that
customers can visit with peace of mind.

Donated disaster stockpiles to Second
Harvest Japan (certified NPO)
Nihonbashi Dia Building has the advantage of being a disasterresistant office building. In case a disaster occurs that makes it
difficult for people to return home, the building has prepared adisaster stockpile (sufficient amount approximately for 3 days
as stipulated by a Tokyo Metropolitan Government ordinance)for distribution to tenants.
When that disaster stockpile nears its expiration date(approximately 5 years), we gradually replace items. At thetime of replacement in 2019, in order to effectively utilize
the disaster stockpile that is no longer used and reducefood losses, we donated the stockpile to Second Harvest
Japan (a certified NPO),and were thus able tocontribute to the activitiesof the certified NPO.
Going forward, we willcontinue to work on
environmental protection
and social contributions
Donated disaster stockpile in 2019
through these activities.

Illuminations of the Mosaic Ferris Wheel andthe Yokohama Bay QuarterAt the Mosaic Ferris Wheel in Kobe Harborland,
illuminations in theme colors and messages are displayedin accordance with various international days andawareness days to disseminate information to local citizens.
In fiscal 2020, every Thursday from April to September,
the illuminations were blue and featured a thank you
message to show appreciation to the healthcare
professionals responding to COVID-19, while on October
1 they were pink for Pink Ribbon Day (breast cancer
awareness campaign).
The Mosaic Ferris Wheel is one nighttime scenery that
represents the Port of Kobe. Going forward, we willcontinue to collaborate in disseminating awareness andother information through the illuminations.
In addition, since June 2020, the Yokohama Bay
Quarter has been working to illuminate the LED lighting in
the building in blue as a way of expressing thanks andshowing its appreciation to healthcare professionals.

Mosaic Ferris Wheel illumination(messages to express appreciation to
the healthcare professionals)

Blue LED illumination at Yokohama Bay
Quarter

We participate in local cleanup activities
Operating bases of the Company and Group companies
nationwide also participated in local cleanup activities
voluntarily. We will strive to contribute to the local
communities by continuing to participate in thesecleaning activities.

Street Cleaning Day at the Head Office

Cleanup activities at Kobe Harborland

Cleanup activities at Fuji Logistics Co., Ltd.

Participating in local blood donation activities
In fiscal 2020, the Osaka Branch Ibaraki No. 1 Office andNo. 2 Office, Osaka Dia Building, and the Shinko Osaka
Center Building agreed to a request from the Osaka Red
Cross Blood Center and participated in blood donation
activities in December and March. Going forward, we willcontinue to contribute to the local community throughthese activities.

Blood donation activities at the Osaka
Branch sales office

Blood donation activities at Osaka Dia
Building

Mitsubishi Logistics Integrated Report 2021

51

Initiatives for ESG Management and the SDGs

Statement Supporting
the UN Global Compact
The Group promotes its initiatives for ESG management and the SDGs pursuant to the UN Global Compact’s 10 principles.

Practice of the UN Global Compact’s
10 principles
The Group agreed to adhere to the
UN Global Compact (hereinafter“UNGC”) and endorsed approval in
May 2014.
The UNGC is a voluntary
corporate responsibility initiative forbusinesses that are aiming forsustainable growth as a
responsible member of society.
The UNGC asks companies to voluntarily participate increating a global framework to take creative leadership.
At the World Economic Forum in Davos, Switzerland in
1999, Kofi Annan, then Secretary-General of the United
Nations, proposed that companies should observe the
10 principles in the areas of human rights, labor, theenvironment and anti-corruption to solve various
problems that could occur due to internationalization andthe global expansion of businesses. In July 2000, the
UNGC was launched at the UN Headquarters in New
York. As of July 2021, approximately 13,800 companies
and organizations around the world were participating in
the UNGC.
Based on its “Code of Conduct,” the Group will strive
to practice the UNGC’s 10 principles as a good memberof international society.

Global Compact Network Japan’s Web site
https://www.ungcjn.org/index.html

52

Mitsubishi Logistics Integrated Report 2021

UNGC’s 10 principles

Human
RightsPrinciple 1: Businesses should support andrespect the protection ofinternationally proclaimed humanrights; andPrinciple 2: Make sure that they are not complicit
in human rights abuses.

Labor

Principle 3: Businesses should uphold the freedomof association and the effective
recognition of the right to collective
bargaining;
Principle 4: The elimination of all forms of forced
and compulsory labor;
Principle 5: The effective abolition of child labor;
andPrinciple 6: The elimination of discrimination in
respect of employment andoccupation.

Environment

Principle 7: Businesses should support aprecautionary approach toenvironmental challenges;
Principle 8: Undertake initiatives to promote
greater environmental responsibility;andPrinciple 9: Encourage the development anddiffusion of environmentally friendly
technologies.

AntiCorruption

Principle 10: Businesses should work against
corruption in all its forms, including
extortion and bribery.

■ Company Profile (As of March 31, 2021)
Company name

Mitsubishi Logistics Corporation

Head OfficeNihonbashi Dia Building, 19-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8630, Japan

Establishment

April 15, 1887

Capital¥22,393 million

Revenue (fiscal 2020)

Consolidated: ¥213.7 billion Non-consolidated: ¥151.5 billion

The number of employees of 4,598	(excluding 44 workers on leave to work outside the Group, 1,259 temporary staff and 1,311 employees on
loan/dispatched from outside the Group)
the Mitsubishi Logistics GroupThe number of employees 996	(excluding 106 employees on leave to work for other companies, 172 temporary staff and 633 employees
on loan/dispatched from inside and outside the Group)of the Company
Branches

Tokyo, Yokohama, Nagoya, Osaka, Kobe, Fukuoka

Major Businesses

Logistics	Warehousing; trucking; port and harbor operation; international transportation; marine freighttransportation; customs clearance; development, sales, management and administration of logistics
information systems; etc.
Real Estate	Buying, selling, leasing and management of real estate; contracting of construction work, its
design and supervision; operation of parking lots; etc.

Companies in the scopeof consolidation

Consolidated subsidiaries (49 companies)(as of August 31, 2021)

 ohoku Ryoso Transportation Co., Ltd., Sairyo Service Co., Ltd., Dia Pharmaceutical Network Co., Ltd., Tokyo Dia Service Co., Ltd.,TDia Systems Corporation, Ryoso Transportation Co., Ltd., Unitrans Ltd., Keihin Naigai Forwarding Co., Ltd., Touryo Kigyo Co., Ltd.,
Fuji Logistics Co., Ltd., Tokyo Juki Transport Co., Ltd., SII Logistics Inc., Fuji Logistics Support Co., Ltd., Kinko Service Co., Ltd.,
Chubu Trade Warehousing Co., Ltd., Meiryo Kigyo Co., Ltd., Ryoyo Transportation Co., Ltd., Kyokuryo Warehouse Co., Ltd.,
Hanryo Kigyo Co., Ltd., Shinryo Koun Co., Ltd., Naigai Forwarding Co., Ltd., Kyushu Ryoso Transportation Co., Ltd., Monryo Transport Corporation,
Hakuryo Koun Co., Ltd., Seiho Kaiun Kaisha, Ltd., Saryo Service Co., Ltd., Mitsubishi Logistics America Corporation,
Mitsubishi Warehouse California Corporation, Mitsubishi Logistics Europe B.V., Fuji Logistics Europe B.V., Mitsubishi Logistics China Co., Ltd.,
Shanghai Qingke Warehouse Management Co., Ltd., Shanghai Linghua Logistics Co., Ltd., Shanghai Linghua Qingsheng Logistics Co., Ltd.,
Shanghai Lingyun Global Forwarding Co., Ltd., Fuji Logistics (China) Co., Ltd.,Fuji Logistics (Shanghai) Co., Ltd.,
Mitsubishi Logistics Hong Kong Ltd., Fuji Logistics (H.K.) Co., Ltd., Mitsubishi Logistics Thailand Co., Ltd.,
P.T. Mitsubishi Logistics Indonesia, P.T. DIA-JAYA FORWARDING INDONESIA, Fuji Logistics Malaysia SDN.BHD.,
Dia Buil-Tech Co., Ltd., Yokohama Dia Building Management Corporation, Chubo Kaihatsu Co., Ltd.,
Osaka Dia Buil-Tech Co., Ltd., Kobe Dia Maintenance Co., Ltd., T’ACT Co., Ltd.

Subsidiaries and Affiliates Accounted for by the Equity Method (3 companies)
MY Terminals Holdings, Limited, Kusatsu Soko Co., Ltd., Jupiter Global Limited■ Stock Information (as of March 31, 2021)
Status of stocks
Authorized shares
Number of shares issued
Number of shareholders
Stock exchange listing
Securities code
Major shareholders

Classification by types of shareholders
220,000,000
87,960,739
6,323
1st section of the Tokyo Stock Exchange
9301

Shareholder’s name
The Master Trust Bank of Japan, Ltd. (trust account)
Custody Bank of Japan, Ltd. (trust account)
Meiji Yasuda Life Insurance Company
MITSUBISHI ESTATE CO., LTD.
STATE STREET BANK AND TRUST COMPANY 505001
Tokyo Marine & Nichido Fire Insurance Co., Ltd.
AGC Inc.
MUFG Bank, Ltd.
TAKENAKA CORPORATION
Kirin Holdings Company, Limited

Number of
Shareholding
shares held
ratio (%)
(Thousands)
13,907
16.8
5,317
6.4
5,153
6.2
3,665
4.4
2,095
2.5
2,041
2.5
1,657
2.0
1,505
1.8
1,505
1.8
1,482
1.8

Note: 1 In addition to the above, the Company holds 5,263 thousand shares of treasury shares.
Note: 2 M
 UFG BANK, Ltd. have set 750,000 Mitsubishi Logistics’ shares as trust funds for retirement
benefits for which voting rights are reserved, in addition to the shares stated in the table above.
Note: 3 The “Shareholding ratio” is calculated after excluding treasury shares (5,263,066 shares).

Securities Companies 1.4% Individuals and Others 6.6%
Other Corporations
Financial Institutionsin Japan
45.2%
24.4%
Foreign Corporations, etc. 16.4%
Treasury Shares 6.0%
Dividend payouts/Payout ratio(¥) ■Interim ■Year-end

100

0

50

78

34.1
23.0

23.3

40
20

(%)

49.0

43.7

80
60

Payout ratio

45

60
30

30
14
6
8
2016

21
14
7
2017

13.0
30

15
2018

60
30

2019

40

39

30
20

39

30

10

2020

0
2021 (fiscal year)(Plan)* The Company carried out a reverse stock split at a ratio of 1 share for every 2
shares of common stock, with an effective date of October 1, 2017. Accordingly,
the year-end dividend for fiscal 2017 is an amount that takes into account thisreverse stock split.

Changes in share price (as of August 31, 2021)
Share price
(¥)

4,000

3,000

2,000
Trading volume(million shares)

20

10

4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8
2015
2016
2017
2018
2019
2020
2021

0

* The Company carried out a reverse stock split at a ratio of 1 share for every 2 shares of common stock, with an effective date of October 1, 2017. Accordingly, the share priceand trading volume prior to September 2017 are calculated taking into account this reverse stock split.

CSR·Compliance Team, General Affairs Division
Nihonbashi Dia Building
19-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8630, Japan
TEL: +81-3-3278-6657
FAX: +81-3-3278-6694

Extended version
The following are some data related to the Mitsubishi Logistics Integrated Report 2021, which was collected at the end of fiscal 2020.

Environmental conservation
Environmental conservation activity data (by business) *Basic unit denominator (figures from Act on Rationalizing Energy Use, etc.) uses figure that have strong correlations with each business.

Warehousing anddistribution business
Overland transportation
business
Port and Harbor
Operation Business
Real estate business

Basic unit denominator
CO2 emissions
CO2 emissions basic unit
Basic unit denominator
CO2 emissions
CO2 emissions basic unit
Basic unit denominator
CO2 emissions
CO2 emissions basic unit
Basic unit denominator
CO2 emissions
CO2 emissions basic unit

CO2 emissions

Unit
Thousand m2 <Floor area>
Thousand t-CO2
kg-CO2/m2
Million km <Total transportation distance>
Thousand t-CO2
kg-CO2/thousand km
Thousand tons <Handling tons>
t-CO2
kg-CO2/thousand tons
Thousand m2 <Operational area>
Thousand t-CO2
kg-CO2/m2
Thousand t-CO2

Environmental conservation data (by usage, by emission type)

Fiscal 2018
1,555
32.6
21.0
3.9
3.5
898.2
55
7
127.8
686
37.1
54.0
73.2

Fiscal 2019
1,578
27.9
17.7
3.8
3.4
904.7
48
6
124.2
681
34.2
50.2
65.5

Fiscal 2020
1,601
26.8
16.7
3.2
2.9
885.9
51
5
98.9
676
29.1
43.0
58.7

Water use (water supply, sewage)

Electricity use

Fuel use (City gas, LP (Liquefied Petroleum) gas,kerosene, heavy oil, diesel oil, gasoline)

Heat use (Heated water, cold water, vapor)(Thousand m3)
1,000(Million kWh)200

(Thousand GJ)
200(Thousand GJ)
100

845

823

750

150

637

136

132

500

100

100

250

50

50

0

2018

2019

2020 (Fiscal year)

0

2018

2019

2020 (Fiscal year)

0

94.3

88.6

2018

2019

Waste emissions (tons)

Waste emissions (m3)(Thousand t-CO2)
100(Thousand tons)
4(Thousand m3)
8

73.2

65.5

3

58.7

50

2

25
0

2020 (Fiscal year)

2019

0

56.7

50

2020 (Fiscal year)

0

2018

2019

2020 (Fiscal year)

1.7

1.8

1.7

4

2.6

3.8

3.2

2
2018

2020 (Fiscal year)

2019

0

2018

2019

Fiscal year

2016

2017

2018

2019

2020

Leakageamount

468

910

605

361

719

The Company’s facilities that have obtained CASBEE Rank A certification or above
NumberName of facility

BranchCompletion
month

CASBEE name, etc.

Rank
obtained

Notes

1

Sakurajima Distribution Center No. 3

Osaka

March 2008

CASBEE OsakaA

2

Tobishima Distribution Center

NagoyaOctober 2008

CASBEE construction (new)

A

3
4
5

Yokohama Dia Building
Yokohama December 2009
Ibaraki Distribution Center No. 3
Osaka October 2012
Daito Distribution Center
Osaka December 2012
Misato Distribution Center No. 2
Tokyo March 2013
(Phase 1)
DIACREST MUSASHI-NAKAHARAHead Office October 2013
Nihonbashi Dia Building
Head Office September 2014
Tobishima Distribution Center (expansion) Nagoya September 2015
DIACREST KYODAI-KUMANO
Osaka February 2017
Seishin Distribution Center (Phase 1)
Kobe March 2018
Ibaraki Distribution Center No. 4
Osaka July 2018
DIACREST KOKUJUN-KENTO
Osaka March 2019
Seishin Distribution Center (Phase 2)
Kobe November 2019
Minamihonmoku Distribution Center Yokohama February 2020
Meieki Dia Meitetsu Building
Nagoya June 2020
Misato Distribution Center No. 2
Tokyo October 2020
(Phase 2)

CASBEE Yokohama
CASBEE Osaka Prefecture
CASBEE Osaka Prefecture
CASBEE Saitama
Prefecture
CASBEE Kawasaki
CASBEE new construction
CASBEE Aichi
CASBEE Kyoto
CASBEE Kobe
CASBEE Osaka Prefecture
CASBEE Osaka Prefecture
CASBEE Kobe
CASBEE Yokohama
CASBEE Nagoya

S
AA

Osaka Prefecture
Osaka PrefectureA

Saitama Prefecture

CASBEE Saitama

A

6
7
8
9
10
11
12
13
14
15
16
17

130.6

130

Parentheses indicate index numbers setting the mileage for fiscal 2006 as 100.0.

110
100
90

105.6

107.5

105.5 105.7

100.0

102.9 101.3 103.4

107.0 108.2

110.3 109.1 109.2

2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(Fiscal year)

Promotion of CSR
Number of news releases

Logistics
Real Estate
IR
CSR
Other
Total

Unit: case
Fiscal 2018
achievements
7
3
6
2
7
25

Fiscal 2019achievements
7
1
11
2
1
22

Fiscal 2020
achievements
8
4
22
2
11
47

Number of persons who participated in awareness surveys aimed at disseminating thecorporate philosophy and better understanding of CSR and compliance.  Unit: persons
Fiscal 2019achievements

Fiscal 2020
achievements

Awareness surveys concerning
CSR and compliance
In-house

1,517

1,533

1,682

Domestic Group companies

1,882

1,943

1,918

Total

3,399

3,476

3,600

F
 ulfillment of Sincere and Fair Business Activities

Number of persons who participated in compliance lecture for
Unit: persons
prevention of insider trading
Fiscal 2018
achievements
59

In-house

Fiscal 2019achievements
67

Fiscal 2020
achievements
88

Number of respondents to information security questionnaire

Number of questionnaires conducted
Number of respondents

Fiscal 2018
achievements
Once
3,431

Fiscal 2019achievements
Once
3,315

Fiscal 2020
achievements
Once
3,526

Number of persons who participated in compliance lecture for the Act
against Delay in Payment of Subcontract Proceeds, etc. Unit: persons

In-house
Domestic Group companies
Total

Fiscal 2018
achievements
846
1,033
1,879

Fiscal 2019achievements
854
1,097
1,951

Fiscal 2020
achievements
906
1,155
2,061

2020 (Fiscal year)*Calculation standard● Volume related to electricity usage, fuel usage, heat usage, CO2 emissions and basic unit denominator from the warehousing and distribution business, the port and harbor operation business and the real estatebusiness are based on the reported values in the Company’s report based on the Act on Rationalizing Energy Use.
● The international transportation business is included in the warehouse and distribution business, given the small number of operating sites.
● Although the overland transportation business is not under the Act on Rationalizing Energy Use, fuel usage, CO2 emissions and basic unit denominator were calculated for one of the Company’s major trucking
subsidiaries based on the standard in the Act on Rationalizing Energy Use.
● Business sites for the port and harbor operation business were restricted to three places where the Company is in charge of transportation referenced to the Act on Rationalizing Energy Use.
● For electricity usage and CO2 emissions, the reported amounts for the Company’s subsidiary in the logistics business (the one company under the Act on Rationalizing Energy Use) were added.
● The CO2 emission volume was calculated based on the electricity, fuel and heat volume used under the standard of the Act on Rationalizing Energy Use.
● For water use, the volume of water used by the Company is indicated. The waste emission shows the volume of waste emitted by part of the Company (excluding the real estate business, etc.) and by some of the Group companies.
★Erroneous figures for the waste emissions (m3) for fiscal 2019 have been corrected.

Calculated leakage amount of fluorocarbons Unit:t-CO2

140

120

Fiscal year
2014
2015
2016
2017
2018
2019
2020
2.53
2.62
2.65
2.70
2.67
2.67
3.20
Vehicles forbusiness use （103.4）（107.0）（108.2）（110.3）（109.1）（109.2）（130.6）

Fiscal 2018
achievements

6

1
2018

74.7

76.1

Fiscal year
2006
2008
2009
2010
2011
2012
2013
2.45
2.59
2.63
2.58
2.59
2.52
2.48
Vehicles forbusiness use （100.0）（105.6）（107.5）（105.5）（105.7）（102.9）（101.3）

25

CO2 emissions

75

72.4

75

150

124

Change of total gas mileage at all operational sites of Ryoso Transportation Co., Ltd. (fiscal 2006 to fiscal 2020) (Unit: km/L)

A
S
A
A
A
A
A
A
A
A

Osaka City
Institute for Building Environment andEnergy Conservation (IBEC)

Organizational Governance
Number of persons who participated in check aimed at
Unit: persons
dissemination of awareness of compliance 
Fiscal 2018
achievements

Osaka Prefecture
Osaka Prefecture, carpark building is Rank B

Fiscal 2019achievements

Fiscal 2020
achievements

Check on status of compliancewith Code of Conduct
In-house

1,565

1,606

1,682

Domestic Group companies

2,646

2,646

2,647

Overseas Group companies

80

84

75

4,291

4,336

4,404

Total

Number of persons who participated in human rights awareness
Unit: persons
course to spread awareness for human rights

Human rights awareness course

Number of persons who participated in training for earthquake measures

Execution period
Place
Number of participants

Fiscal 2018
achievements
February, March
2019
Tokyo Branch, Yokohama
Branch, Kobe Branch
Total of around110

Fiscal 2019achievements

Fiscal 2020
achievements

−

−

−

−

−

−

* Not held in fiscal 2019 and fiscal 2020 due to COVID-19. In addition, training for large-scaledisaster measure is held every year with mandatory employee participation (see p. 47).

Support/relief goods logistics base facilities

Respect for Human Rights

ERI Co., Ltd.
Kyoto City

Provision of Safe, High-Quality and Useful Services

Fiscal 2018
achievements

Fiscal 2019achievements

Fiscal 2020
achievements

58

49

−*

*Not held due to COVID-19. Education provided separately by methods other thangroup training sessions.

Year/monthof
construction
Tokyo
Aomi Distribution Center No. 1
1997.6
Kanto
Daikoku Warehouse B
1988.1
Yokohama
Daikoku Warehouse C
1994.4
Kinjoh Warehouse
1994.5Tokai Nagoya Tobishima Distribution Center2008.11
Honjoh Warehouse
1992.1
Sakurajima Distribution Center No. 1
1998.3
Osaka
Rokko Warehouse D
1988.1
Kinki
Kobe
Rokko Warehouse E
1993.10Chuo Futo Warehouse
1995.10
Kyushu Fukuoka
Tosu Distribution Center
2003.4Block

BranchFacility nameArea used fortransportation of
support/relief goods
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2

Mitsubishi Logistics Integrated Report 2021

Extended version
The following are some data related to the Mitsubishi Logistics Integrated Report 2021, which was collected at the end of fiscal 2020.

Environmental conservation
Environmental conservation activity data (by business) *Basic unit denominator (figures from Act on Rationalizing Energy Use, etc.) uses figure that have strong correlations with each business.

Warehousing anddistribution business
Overland transportation
business
Port and Harbor
Operation Business
Real estate business

Basic unit denominator
CO2 emissions
CO2 emissions basic unit
Basic unit denominator
CO2 emissions
CO2 emissions basic unit
Basic unit denominator
CO2 emissions
CO2 emissions basic unit
Basic unit denominator
CO2 emissions
CO2 emissions basic unit

CO2 emissions

Unit
Thousand m2 <Floor area>
Thousand t-CO2
kg-CO2/m2
Million km <Total transportation distance>
Thousand t-CO2
kg-CO2/thousand km
Thousand tons <Handling tons>
t-CO2
kg-CO2/thousand tons
Thousand m2 <Operational area>
Thousand t-CO2
kg-CO2/m2
Thousand t-CO2

Environmental conservation data (by usage, by emission type)

Fiscal 2018
1,555
32.6
21.0
3.9
3.5
898.2
55
7
127.8
686
37.1
54.0
73.2

Fiscal 2019
1,578
27.9
17.7
3.8
3.4
904.7
48
6
124.2
681
34.2
50.2
65.5

Fiscal 2020
1,601
26.8
16.7
3.2
2.9
885.9
51
5
98.9
676
29.1
43.0
58.7

Water use (water supply, sewage)

Electricity use

Fuel use (City gas, LP (Liquefied Petroleum) gas,kerosene, heavy oil, diesel oil, gasoline)

Heat use (Heated water, cold water, vapor)(Thousand m3)
1,000(Million kWh)200

(Thousand GJ)
200(Thousand GJ)
100

845

823

750

150

637

136

132

500

100

100

250

50

50

0

2018

2019

2020 (Fiscal year)

0

2018

2019

2020 (Fiscal year)

0

94.3

88.6

2018

2019

Waste emissions (tons)

Waste emissions (m3)(Thousand t-CO2)
100(Thousand tons)
4(Thousand m3)
8

73.2

65.5

3

58.7

50

2

25
0

2020 (Fiscal year)

2019

0

56.7

50

2020 (Fiscal year)

0

2018

2019

2020 (Fiscal year)

1.7

1.8

1.7

4

2.6

3.8

3.2

2
2018

2020 (Fiscal year)

2019

0

2018

2019

Fiscal year

2016

2017

2018

2019

2020

Leakageamount

468

910

605

361

719

The Company’s facilities that have obtained CASBEE Rank A certification or above
NumberName of facility

BranchCompletion
month

CASBEE name, etc.

Rank
obtained

Notes

1

Sakurajima Distribution Center No. 3

Osaka

March 2008

CASBEE OsakaA

2

Tobishima Distribution Center

NagoyaOctober 2008

CASBEE construction (new)

A

3
4
5

Yokohama Dia Building
Yokohama December 2009
Ibaraki Distribution Center No. 3
Osaka October 2012
Daito Distribution Center
Osaka December 2012
Misato Distribution Center No. 2
Tokyo March 2013
(Phase 1)
DIACREST MUSASHI-NAKAHARAHead Office October 2013
Nihonbashi Dia Building
Head Office September 2014
Tobishima Distribution Center (expansion) Nagoya September 2015
DIACREST KYODAI-KUMANO
Osaka February 2017
Seishin Distribution Center (Phase 1)
Kobe March 2018
Ibaraki Distribution Center No. 4
Osaka July 2018
DIACREST KOKUJUN-KENTO
Osaka March 2019
Seishin Distribution Center (Phase 2)
Kobe November 2019
Minamihonmoku Distribution Center Yokohama February 2020
Meieki Dia Meitetsu Building
Nagoya June 2020
Misato Distribution Center No. 2
Tokyo October 2020
(Phase 2)

CASBEE Yokohama
CASBEE Osaka Prefecture
CASBEE Osaka Prefecture
CASBEE Saitama
Prefecture
CASBEE Kawasaki
CASBEE new construction
CASBEE Aichi
CASBEE Kyoto
CASBEE Kobe
CASBEE Osaka Prefecture
CASBEE Osaka Prefecture
CASBEE Kobe
CASBEE Yokohama
CASBEE Nagoya

S
AA

Osaka Prefecture
Osaka PrefectureA

Saitama Prefecture

CASBEE Saitama

A

6
7
8
9
10
11
12
13
14
15
16
17

130.6

130

Parentheses indicate index numbers setting the mileage for fiscal 2006 as 100.0.

110
100
90

105.6

107.5

105.5 105.7

100.0

102.9 101.3 103.4

107.0 108.2

110.3 109.1 109.2

2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(Fiscal year)

Promotion of CSR
Number of news releases

Logistics
Real Estate
IR
CSR
Other
Total

Unit: case
Fiscal 2018
achievements
7
3
6
2
7
25

Fiscal 2019achievements
7
1
11
2
1
22

Fiscal 2020
achievements
8
4
22
2
11
47

Number of persons who participated in awareness surveys aimed at disseminating thecorporate philosophy and better understanding of CSR and compliance.  Unit: persons
Fiscal 2019achievements

Fiscal 2020
achievements

Awareness surveys concerning
CSR and compliance
In-house

1,517

1,533

1,682

Domestic Group companies

1,882

1,943

1,918

Total

3,399

3,476

3,600

F
 ulfillment of Sincere and Fair Business Activities

Number of persons who participated in compliance lecture for
Unit: persons
prevention of insider trading
Fiscal 2018
achievements
59

In-house

Fiscal 2019achievements
67

Fiscal 2020
achievements
88

Number of respondents to information security questionnaire

Number of questionnaires conducted
Number of respondents

Fiscal 2018
achievements
Once
3,431

Fiscal 2019achievements
Once
3,315

Fiscal 2020
achievements
Once
3,526

Number of persons who participated in compliance lecture for the Act
against Delay in Payment of Subcontract Proceeds, etc. Unit: persons

In-house
Domestic Group companies
Total

Fiscal 2018
achievements
846
1,033
1,879

Fiscal 2019achievements
854
1,097
1,951

Fiscal 2020
achievements
906
1,155
2,061

2020 (Fiscal year)*Calculation standard● Volume related to electricity usage, fuel usage, heat usage, CO2 emissions and basic unit denominator from the warehousing and distribution business, the port and harbor operation business and the real estatebusiness are based on the reported values in the Company’s report based on the Act on Rationalizing Energy Use.
● The international transportation business is included in the warehouse and distribution business, given the small number of operating sites.
● Although the overland transportation business is not under the Act on Rationalizing Energy Use, fuel usage, CO2 emissions and basic unit denominator were calculated for one of the Company’s major trucking
subsidiaries based on the standard in the Act on Rationalizing Energy Use.
● Business sites for the port and harbor operation business were restricted to three places where the Company is in charge of transportation referenced to the Act on Rationalizing Energy Use.
● For electricity usage and CO2 emissions, the reported amounts for the Company’s subsidiary in the logistics business (the one company under the Act on Rationalizing Energy Use) were added.
● The CO2 emission volume was calculated based on the electricity, fuel and heat volume used under the standard of the Act on Rationalizing Energy Use.
● For water use, the volume of water used by the Company is indicated. The waste emission shows the volume of waste emitted by part of the Company (excluding the real estate business, etc.) and by some of the Group companies.
★Erroneous figures for the waste emissions (m3) for fiscal 2019 have been corrected.

Calculated leakage amount of fluorocarbons Unit:t-CO2

140

120

Fiscal year
2014
2015
2016
2017
2018
2019
2020
2.53
2.62
2.65
2.70
2.67
2.67
3.20
Vehicles forbusiness use （103.4）（107.0）（108.2）（110.3）（109.1）（109.2）（130.6）

Fiscal 2018
achievements

6

1
2018

74.7

76.1

Fiscal year
2006
2008
2009
2010
2011
2012
2013
2.45
2.59
2.63
2.58
2.59
2.52
2.48
Vehicles forbusiness use （100.0）（105.6）（107.5）（105.5）（105.7）（102.9）（101.3）

25

CO2 emissions

75

72.4

75

150

124

Change of total gas mileage at all operational sites of Ryoso Transportation Co., Ltd. (fiscal 2006 to fiscal 2020) (Unit: km/L)

A
S
A
A
A
A
A
A
A
A

Osaka City
Institute for Building Environment andEnergy Conservation (IBEC)

Organizational Governance
Number of persons who participated in check aimed at
Unit: persons
dissemination of awareness of compliance 
Fiscal 2018
achievements

Osaka Prefecture
Osaka Prefecture, carpark building is Rank B

Fiscal 2019achievements

Fiscal 2020
achievements

Check on status of compliancewith Code of Conduct
In-house

1,565

1,606

1,682

Domestic Group companies

2,646

2,646

2,647

Overseas Group companies

80

84

75

4,291

4,336

4,404

Total

Number of persons who participated in human rights awareness
Unit: persons
course to spread awareness for human rights

Human rights awareness course

Number of persons who participated in training for earthquake measures

Execution period
Place
Number of participants

Fiscal 2018
achievements
February, March
2019
Tokyo Branch, Yokohama
Branch, Kobe Branch
Total of around110

Fiscal 2019achievements

Fiscal 2020
achievements

−

−

−

−

−

−

* Not held in fiscal 2019 and fiscal 2020 due to COVID-19. In addition, training for large-scaledisaster measure is held every year with mandatory employee participation (see p. 47).

Support/relief goods logistics base facilities

Respect for Human Rights

ERI Co., Ltd.
Kyoto City

Provision of Safe, High-Quality and Useful Services

Fiscal 2018
achievements

Fiscal 2019achievements

Fiscal 2020
achievements

58

49

−*

*Not held due to COVID-19. Education provided separately by methods other thangroup training sessions.

Year/monthof
construction
Tokyo
Aomi Distribution Center No. 1
1997.6
Kanto
Daikoku Warehouse B
1988.1
Yokohama
Daikoku Warehouse C
1994.4
Kinjoh Warehouse
1994.5Tokai Nagoya Tobishima Distribution Center2008.11
Honjoh Warehouse
1992.1
Sakurajima Distribution Center No. 1
1998.3
Osaka
Rokko Warehouse D
1988.1
Kinki
Kobe
Rokko Warehouse E
1993.10Chuo Futo Warehouse
1995.10
Kyushu Fukuoka
Tosu Distribution Center
2003.4Block

BranchFacility nameArea used fortransportation of
support/relief goods
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2
1,000m2

Mitsubishi Logistics Integrated Report 2021

Mitsubishi Logistics Corporation Integrated Report 2021

GRI Standards reference table(Lists mainly “Core” options)■ General Disclosures
Disclosure
number

Disclosure contents

Reference page
numberContents

1. Organizational Profile
102-1

a. Name of the organization.

P. 53

Company Profile

102-2

a. A description of the organization’s activities.
b. Primary brands, products and services, including an explanation of any products or services that are banned incertain markets.

P. 8-11

Introduction of Businesses

102-3

a. Location of the organization’s headquarters.

P. 53

Company Profile

102-4

a. Number of countries where the organization operates, and the names of countries where it has significant
operations.

P. 53

Company Profile

102-5

a. Nature of ownership and legal form.

P. 53

Company Profile

102-6

a. Markets served, including:i. geographic locations where products and services are offered;ii. sectors served;
iii. types of customers and beneficiaries.

P. 53

Company Profile

102-7

a. Scale of the organization, including:i. total number of employees;
ii. total number of operations;iii. 	net sales (for private sector organizations) or net revenues (for public sector organizations);
iv. 	total capitalization (for private sector organizations) broken down in terms of debt and equity;
v. quantity of products or services provided.

P. 6-7
P. 53

At a Glance
Company Profile

102-8

a. Total number of employees by employment contract (permanent and temporary), by gender.
b. Total number of employees by employment contract (permanent and temporary), by region.
c. Total number of employees by employment type (full-time and part-time), by gender.
d. Whether a significant portion of the organization’s activities are performed by workers who are not employees. If
applicable, a description of the nature and scale of work performed by workers who are not employees.
e. Any significant variations in the numbers reported in Disclosures 102-8-a、102-8-b、and 102-8-c (such as seasonalvariations in the tourism or agricultural industries).
f. An explanation of how the data have been compiled, including any assumptions made.

P. 31
P. 53

Status of employees
Company Profile

102-9

a. A description of the organization’s supply chain, including its main elements as they relate to the organization’s
activities, primary brands, products, and services.

P. 8-11

Introduction of Businesses

102-10a. Significant changes to the organization’s size, structure, ownership, or supply chain, including:i. 	Changes in the location of, or changes in, operations, including facility openings, closings, and expansions;ii. 	Changes in the share capital structure and other capital formation, maintenance, and alteration operations (forprivate sector organizations);iii. 	Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including
selection and termination.

P. 42

Opening of Misato Distribution
Center No. 2 (Phase 2) in
Saitama

102-11a. Whether and how the organization applies the Precautionary Principle or approach.

102-12a. A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which theorganization subscribes or which it endorses.

P. 52

Statement Supporting the UN
Global Compact

102-13a. A list of the main memberships of industry or other associations, and national or international advocacy
organizations.

――P. 4-5
P. 12-13

Top Message
Initiatives for ESG
Management and the SDGs

P. 20-27
P. 44-48

Organizational Governance
Provision of Safe, High-Quality
and Useful Services

2. Strategy
102-14a. A statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position)
about the relevance of sustainability to the organization and its strategy for addressing sustainability.

3. Ethics and integrity

102-16a. A description of the organization’s values, principles, standards, and norms of behavior.

P. 12-19

Initiatives for ESG
Management and the SDGs,
The MLC2030 Vision, and theMedium-term Management
Plan

P. 20
P, 12, 16, 20

Organizational governance
Sustainability Committee

4. Governance102-18a. Governance structure of the organization, including committees of the highest governance body.
b. Committees responsible for decision-making on economic, environmental, and social topics.

Mitsubishi Logistics Corporation Integrated Report 2021
GRI Standards reference table (Lists mainly “Core” options)Disclosure
number

Disclosure contents

Reference page
numberContents―

5. Stakeholder engagement102-40a. A list of stakeholder groups engaged by the organization.

―

102-41a. Percentage of total employees covered by collective bargaining agreements.

――

P. 12-17

Initiatives for ESG
Management and the SDGs

102-42a. The basis for identifying and selecting stakeholders with whom to engage.

102-43a. The organization’s approach to stakeholder engagement, including frequency of engagement by type and by
stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of thereport preparation process.

――102-44a. Key topics and concerns that have been raised through stakeholder engagement, including:i. 	 how the organization has responded to those key topics and concerns, including through its reporting;ii. 	 the stakeholder groups that raised each of the key topics and concerns.

――

6. Reporting practice102-45a. A list of all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Whether any entity included in the organization’s consolidated financial statements or equivalent documents is notcovered by the report.

P. 53

Company Profile

102-46a. An explanation of the process for defining the report content and the topic Boundaries.
b. An explanation of how the organization has implemented the Reporting Principles for defining report content.

P. 1

Editorial Policy

102-47a. A list of the material topics identified in the process for defining report content.

――

Partial amendment to waste
Extended version
emissions (m3)102-48a. The effect of any restatements of information given in previous reports, and the reasons for such restatements.

102-49a. Significant changes from previous reporting periods in the list of material topics and topic Boundaries.

――

102-50a. Reporting period for the information provided.

P. 1

Editorial Policy

102-51a. If applicable, the date of the most recent previous report.

P. 1

Editorial Policy

102-52a. Reporting cycle.

P. 1

Editorial Policy

102-53a. The contact point for questions regarding the report or its contents.

P. 1

Editorial Policy

102-54a. The claim made by the organization, if it has prepared a report in accordance with the GRI Standards, either:i.	‘This report has been prepared in accordance with the GRI Standards; Core option’;
ii.	‘This report has been prepared in accordance with the GRI Standards: Comprehensive option.’――102-55a. The GRI content index, which specifies each of the GRI standards used and lists all disclosures included in the report.
b. For each disclosure, the content index shall include:i. 	 the number of the disclosure (for disclosures covered by the GRI Standards);ii. 	the page number(s) or URL(s) where the information can be found, either within the report or in other publishedmaterials;
iii. 	if applicable, and where permitted, the reason(s) for omission when a required disclosure cannot be made.

――102-56a. A description of the organization’s policy and current practice with regard to seeking external assurance for thereport.
b. If the report has been externally assured:i. 	A reference to the external assurance report, statements, or opinions. If not included in the assurance reportaccompanying the sustainability report, a description of what has and what has not been assured and on what
basis, including the assurance standards used, the level of assurance obtained, and any limitations of theassurance process;ii. 	The relationship between the organization and the assurance provider;iii. 	Whether and how the highest governance body or senior executives are involved in seeking external assurance
for the organization’s sustainability report.

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Reference page
numberContents――■ Management Approach
Disclosure
number

Disclosure contents

General requirements for reporting the management approach

103-1

a. An explanation of why the topic is material.
b. The Boundary for the material topic, which includes a description of:i. 	where the impacts occur;ii. 	the organization’s involvement with the impacts. For example, whether the organization has caused or contributed
to the impacts, or is directly linked to the impacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.